Build up that emergency fund!
, that could be the situation you're in this year. Part of that overhaul involved adjusting withholding tables so workers could access more of their earnings up front, in their paychecks. Some workers got their hands onextra money, and if your paycheck went up a whole lot, you could wind up with an underpayment on your hands for 2019. As such, you may find that you owe the IRS money this April when you file your taxes.
The ideal way to cope with a tax bill is to dip into your savings to cover that debt. Data from tax prep company reveals that 44% of Americans would pay a tax bill with money in savings. Twenty-one percent are convinced they'd need to whip out a credit card to cover that expense.. You never know when you might have an unplanned bill on your hands, whether it comes from the IRS or another source, and without cash reserves, you could be looking at unpleasant, finance-damaging debt.
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