The IRS is encouraging taxpayers to review their tax withholding now to avoid unexpected bills or refunds when filing next year. By adjusting withholding early, individuals can better manage cash flow and prevent penalties.
The IRS offers a free Tax Withholding Estimator to help employees, independent contractors, and retirees check if the correct amount is being withheld. After using the tool, taxpayers may need to update their Form W-4 or adjust voluntary payments.
The IRS recommends checking withholding at least once a year, especially after life changes like a new job, home purchase, or marriage.
Gather income statements, prior tax returns, and side income records to ensure accuracy.
Publication 505 offers guidance for those with more complex tax situations.