Monthly News: October 2020

If you owed taxes or got a big refund when you filed your 2019 tax return, you may want to check your withholding.

The IRS supplies a withholding estimator on its website. The estimator helps people determine if they are having the right amount of taxes withheld from their pay and other sources of income.

There is an underpayment penalty if you don’t prepay enough of your taxes. If you prepay at least 90% of your 2020 taxes or 100% of what you owed for the previous year, you will avoid the underpayment penalty. For people who had more than $150,000 in adjusted gross income in 2019, they are required to pay at least 110%.