This year they changed the way taxes are paid. I started a new job in June 2020 and the w4 looked weird and no tax was taken out of my first check. When I asked, he said the government changed the way they are handing federal taxes to lessen people getting big refunds next year....tack that on with all the other changes and it’s no surprise you owe money. My hubby changed his w4 to take extra out and hopefully it will make up for it....
I am a tax preparer, and most of my industry (forums I read) have been scratching our heads over the "new" w-4. Just remember your tax refund is an interest free loan to the government you probably bitch about. You should always owe at the end of the year (but keep it reasonable).
This year they changed the way taxes are paid. I started a new job in June 2020 and the w4 looked weird and no tax was taken out of my first check. When I asked, he said the government changed the way they are handing federal taxes to lessen people getting big refunds next year....tack that on with all the other changes and it’s no surprise you owe money. My hubby changed his w4 to take extra out and hopefully it will make up for it....
I am a tax preparer, and most of my industry (forums I read) have been scratching our heads over the "new" w-4. Just remember your tax refund is an interest free loan to the government you probably bitch about. You should always owe at the end of the year (but keep it reasonable).
better to owe than to give an interest-free loan to the govt.