CHARLOTTE — The Internal Revenue Service encourages North Carolina taxpayers to consider using the end of the summer to make tax withholding or payment updates to avoid a potential surprise next year at tax time.
While most taxpayers get a refund after filing their taxes, many also find they unexpectedly owe taxes. This can be due to a life or job change for which they did not make the necessary tax adjustment during the year.
Those who should be especially careful are:
Gig economy workers.Those with a “side hustle.”Anyone earning income not subject to withholding.
These individuals should check the amount they pay, or the amount of tax they have withheld throughout the year, to bring the tax they pay closer to what is owed. The IRS has a special Tax Withholding Estimator that can help taxpayers align their tax withholding or tax payments with what they owe.
The IRS reminds taxpayers that tax planning done now can save time and frustration later. Here are some important things to keep in mind: