(St. Joseph,MO) A mistake on state tax forms could be costing Missourians money. In September the Missouri Department of Revenue announced an error in the state tax tables, which was causing workers to be underpaying on their W-4s.
“The Missouri Department of Revenue basically came out with notice that their withholding tables were inaccurate for 2018,”Certified Public Accountant David Liechti said. “They’re reissued new tables to adjust withholdings on people’s paychecks so they would get closer in line with the anticipated tax liability would be for 2018.”
After the error was corrected, many Missourians weren’t informed about needing their employer to adjust their state withholdings. If taxpayers are not paying the corrected amount of tax withholdings, they could see lower refunds or end up owing money to the state.
It’s unknown the exact number of people that will be impacted by the change.The Missouri Department of Revenue reviewed a sample of 2,000 single filers, and the average taxpayer who received a refund of $73.70 in 2017, would be expected to owe the state about $64.99 for tax year 2018.
Liechti said the Department of Revenue is considering establishing payment plans for people needing help covering the unexpected expenses.
“There is discussion right now that they might allow people to have an installment plan from the due date of the tax return which is April 15 until October, where you can spread your liability out over a series of months, because of the error they had,” Liechti said.
If the department allows for an installment plan forms will be issues in the following weeks. Liechti recommends checking with your employer to insure the correct amount of state taxes are being withheld from each paycheck.