For some taxpayers who face an unexpected tax bill, another hit could come with it: no way to pay what's owed by the April 15 due date.
With returns being prepared for the first time under new tax law, some people are getting caught flat-footed by owing money to Uncle Sam after past refunds or owing more than anticipated — despite lower marginal income tax rates across the board.
The reasons for the surprise bills vary, although one contributing culprit is the reduced payroll withholding rates applied in 2018. In simple terms, this means the amount withheld from worker paychecks wasn't enough to cover their tax liability for the year. Other factors include the elimination of personal exemptions and the limited deductions available to itemizers.