(02-08-2019, 11:07 AM)fenders53 Wrote: Can someone explain how "they" can change the tax code, then hit you with a penalty for not adjusting your withholding that year? Am I missing something here?
The new withholding calculator issued by the IRS in 2018 did a poor job of calculating withholding. It resulted in a lot of people not withholding enough from their pay, and owing the IRS once the tax bill came due this year.
I got lucky, as my bonus last year was paid under the old withholding tables and resulted in a refund payable this year. Have already submitted a W-4 to adjust my withholding during this year, as it looked like I would have to write a hefty check in 2020 if I didn't.