Determining how much to withhold from your paycheck can be tricky. Due to the Tax Cuts and Jobs Act, payroll withholding got even more difficult last year when the IRS changed the withholding tables. Because some individual taxpayers may not have been able to accurately calculate the amount of their required estimated income tax payments for the 2018 tax year, the IRS is expanding the waivers for tax penalties related to underpayment.
If you withheld at least 85% of your current tax liability (in other years it was 90%), you can waive the penalties for underpayment. We can work with you to see if you qualify for this extended waiver, and help you plan better for next year.