The IRS is asking all US taxpayers to urgently check one thing regarding their finances.

Taxpayers should double-check their payroll tax withholdings as soon as possible to avoid surprises when filing returns next year, reports AL.

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If your tax withholdings are not adjusted correctly, then after filing your return you will either have to pay extra, or vice versa - the state will return a larger amount to you. Both are undesirable options. That's why the IRS is asking taxpayers to check their 2023 withholdings now. If something is wrong, you will have two more months to correct everything.

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“While it is best for taxpayers to approve tax withholding amounts at the beginning of the year, an adjustment in the final weeks of 2023 will help avoid surprises such as a large tax debt or large refund,” the IRS said.

With little time left until the end of the year, the IRS urged people who haven't checked their withholdings recently to do so as soon as possible. They have until the end of the year to make any necessary adjustments.

Employers withhold a certain amount from employees' paychecks each month and then send it to the IRS. However, about 70% of taxpayers claim too much withholding. Yes, then the person receives this money in the form of a tax refund. But if an employee has set too large a deduction for taxes, then he receives less salary every month than he could have if he had calculated the tax deductions correctly.

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On the other hand, withholding amounts that are too small can result in the taxpayer having to pay a huge amount of taxes after filing the return.

How to Calculate the Correct Tax Withholding Amount

The IRS has a tool that can make calculating your withholding easier.

Tax Withholding Estimator can determine whether you overpaid and how to adjust your tax amounts to avoid a surprise bill when you file your return.

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