The IRS has issued a warning for senior citizens to check the amounts being held from their retirement and pension accounts after the Tax Cuts and Job Acts may have left too little money being withheld from their checks.
According to the IRS, people who have been paying too little may need to make a quarterly estimated or additional tax payment directly to the agency, or even face a penalty next year, reports Fox Business.
Seniors aren't the only ones at risk, according to a simulation conducted by the Government Accountability Office in August. At that time, it was determined that 21 percent of workers may not be having enough tax money withheld, or three million more than projections that were made before the tax cuts bill was passed.
The simulation also showed that just six percent of taxpayers are expected to have the right amount of wages withheld, but 73 percent could have too much money held.
Part of the issue is that employers are using W-4 forms already on file to calculate the amounts, as there had not been enough time to issue new forms.
Treasury Secretary Steven Mnuchin has urged taxpayers to use the tax calculator available on the IRS website, including retirees, who can enter the amount of their pensions as if they are salary from a job.
The IRS also says Social Security recipients can ask that taxes be withheld at rates ranging from 7-22 percent. They can also make the withholding changes online.
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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