Internal Revenue Service, San Francisco Chronicle, Kathleen Pender discussed on San Francisco Chronicle Business & Technology News - Spoken Edition

Automatic TRANSCRIPT

You're listening to the spoken edition of the San Francisco Chronicle. You're twenty teen tax cut has kicked in but pay attention to withholding by Kathleen Pender, many people expecting a bigger refund. Thanks to the federal tax cut that took effect. This year may be in for an unpleasant surprise when they file their twenty teen taxes, whether they know it or not most Americans have already been getting a little more in their paychecks since late February or early March when the Internal Revenue Service reduced the withholding rate for federal income taxes to account for some but not most of the sweeping changes in last year's tax cuts jobs act for people with simple situations the paycheck Bob should roughly equal their tax cut. But if they were expecting it to arrive in the form of a bigger refund than they got last year, they might be disappointed for those with more complex situations. The extra money they've been getting in their paycheck could exceed what they're do under the act they could wind. Up with a much smaller refund or bigger balance do than last year when they file their twenty eighteen return, the IRS has been urging people to estimate their twenty eighteen taxes. And if necessary file a new form w four with their employer. That's the form payroll processors used to determine how much tax to withhold from worker paychecks. But few people have heeded that advice people who don't pay enough tax throughout the year could face a penalty in the form of interest on their balanced do in most cases, the penalty is in huge. And there are ways to avoid it..

Coming up next