What Are Tax Withholdings?

Every paycheck, a portion of your earnings is withheld for taxes based on the information you provided on your W-4 form. If too much is taken out, you’ll get a refund when you file. If too little is withheld, you might owe the IRS.

Why Adjust Your Withholdings?

• Avoid surprises – No one likes an unexpected tax bill in April.

• Keep more of your paycheck – If you usually get a large refund, that means you’ve been overpaying the IRS all year. Adjusting your withholdings could put more money in your pocket each payday.

• Stay on track – Major life changes (like marriage, having a child, or a second job) can affect your tax situation. Updating your W-4 helps ensure the right amount is withheld.

How to Check and Update Your Withholdings

1. Review Your Last Tax Return – Did you owe money or get a big refund? That’s a sign your withholdings might need adjusting.

2. Use the IRS Tax Withholding Estimator – This online tool can help you figure out the right amount to withhold. IRS Withholding Estimator

Managing your withholdings now can make next year’s tax season much smoother. If you’re unsure what’s best for your situation, a tax professional can offer personalized advice.