Our 2016 tax liability was about $400 less than for 2015.
I also set my W4 withholdings to 3 from 4 in March, 2016.
My company withheld $1300 less for 2016 than for 2015.
For the first time in 25 years, I OWE the IRS during tax reconciliation.
It looks like my utilization checks had insufficient (sometimes zero) federal withholding.
Also, through August 15, they withheld about 0.8% less than later in the year.
Also, I didn’t have pre-tax savings in the first 3 months, but they only withheld an extra 0.25% for that.
I am quite irritated.
This is not something I should have to check every paycheck and compare.
If I wanted to do that, I would work for myself.
On the bright side, we HAVE money set aside for this sort of thing.
I went ahead and dropped W4 allowances to 2, but that doesn’t really fix the problem.