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Reply to "Owing Federal tax each year - am I doing something wrong?"
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[quote=Anonymous]Two main possibilities: - investment income. There's no withholding on that generally, so you need to either have more withheld from your paycheck or pay estimated taxes. - bonuses. These are usually withheld at 22%, so if your marginal rate is higher than that, it will result in under withholding and it can be a lot if bonuses are a large part of your income. This was one of the dumber provisions in the Trump tax law.[/quote]
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