Several months after one of the biggest tax code rewrites in U.S. history, the Treasury Department finally released an online tool to help taxpayers re-calculate their withholding amounts. Nevertheless, millions will owe money come tax time.
Earlier, the IRS did release revised tax tables that conveyed the same information. But information formats like that are difficult for people to understand. The proper withholding amount is very important, emphasized American Institute of Certified Public Accountants chief tax analyst Melissa Labant. Too little, and the taxpayer will owe a significant amount in April. Too much, and “you’re giving an interest-free loan to the government.” Cari Weston, another AICPA tax analyst, added that the more allowances a taxpayer claims, the less money the government withholds.
