If you filed your 2025 return on time, you may now have valuable information that can help you fine-tune your 2026 withholding. A big refund indicates you withheld too much in 2025. If you expect your 2026 income and deductions to be very similar, consider reducing your withholding so that you won’t give the federal government such a large, interest-free loan this year.
Meanwhile, a high tax bill (and perhaps interest and penalties) when you filed your 2025 return means you withheld too little. You may want to increase your withholding in 2026 to avoid, or at least minimize, interest and penalties next April.
Was your 2025 tax bill or refund small? Reviewing your 2026 withholding is still a good idea if this year you have significant changes in income or deductible expenses — or you experience a major life event, such as a marriage, divorce or the birth or adoption of a child. If you earn income not subject to withholding, you may also need to evaluate estimated tax payments to stay compliant and avoid or reduce interest and penalties. Contact the office to discuss your situation.
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