Too many exemptions on withholdings?
Asked by: bellmont
In early January 2012 I was given a promotion at work. When I looked at the leave earnings statement I read under federal with holdings as “S” (my guess was for single) when in actuality that was an “8”. So now that taxes have rolled around I owe a relative fortune. Is there anything I can do to help lessen the amount? Also should I be fearing an underpayment penalty or any other kind of penalties?
Thank you in advance.
Perhaps I should clarify. I understand that I owe what I owe. I was intending to ask if the penalty was built in, which is what I would have liked to lower. Also, I have changed my W-4. Lastly, what size of underpayment penalty am I looking at, is it a percentage or is there a certain bracket that I would fall into?