Why do I always owe at the end of the year?


One common problem that causes people to consistently owe the IRS at the end of every tax year is claiming too many allowances.  Your take-home pay increases, but it does so because less money is being withheld to cover your tax bill.  It may be worth checking with your HR department and see what your filing status is (single, married, or married withholding at higher single rate) and how many allowances you are claiming.  You can update your W-4 anytime throughout the year, and it may be worth looking into if you have to write that check to the IRS every year.

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