REPORT: IRS Warning: Retirees at risk of tax penalty

BY KAT SHEPHERD / SEPTEMBER 13, 2018 /

GET the DML NEWS APP (FREE) Click Here

Below is a report that DML News gives a 4 OUT OF 4 STARS trustworthiness rating. We base this rating on the following criteria:

  • Provides named sources
  • Reported by more than one notable outlet
  • Does not insert opinion or leading words
  • Includes supporting video, direct statements, or photos

Click here to read more about our rating system.

As the most reliable and balanced news aggregation service on the internet, DML News offers the following information published by FOXBUSINESS.COM:

The IRS has a new warning for retirees, and while it’s not about a scam it could end up costing older taxpayers more money than they expect to pay.

The agency issued a statement urging Americans to check the amount being withheld from retirement accounts and monthly pension or annuity checks, as soon as possible, in order to avoid a penalty next year.

The article goes on to state the following:

Since the year is almost over, the IRS said those who discover they have been paying too little, might need to make a quarterly estimated or additional tax payment directly to the agency.

According to a simulation conducted by the Government Accountability Office (GAO) in August, which reviewed the revised federal tax withholding tables for 2018 implemented by the IRS and the Treasury Department, 21 percent of workers are at risk of having their taxes underwithheld – 3 million more than projections based on the old tax code.

Only 6 percent of taxpayers are expected to have wages accurately withheld, while 73 percent are likely to have their taxes overwithheld. The former is three percentage points less than a simulation conducted using the same withholding structure and the old tax code. Accurate withholding was assumed to be within $100 of what is truly owed.

To weigh in on this information provided by FOXBUSINESS.COM, engage in our LIVE CHAT below. Scroll down.

Facebook has SIGNIFICANTLY reduced the distribution of DML NEWS posts, and instead fills newsfeeds with news from the mainstream media. The way to fight back is by sharing our posts with your family and friends. Please take a moment now and click the share button. SHARE NOW



DML News offered you the above information as part of our ongoing effort to educate and inform people around the world. You can obtain additional information by visiting FOXBUSINESS.COM

2 Comments

  1. Katerlin September 14th, 2018 at 1:58 am

    Excuse me but Social security has already been taxed. It was taxed when you made it and then a portion was syphoned off to go into SS.

    Reply

    • Mary S September 17th, 2018 at 12:52 am

      Yes, but when we file our annual taxes they still tax, like me for example, 80% of my social security check! I call it double dipping!

      Reply

Leave a comment

Your email address will not be published. Required fields are marked *