Check Your Tax Withholding Now to Avoid a Surprise Next Year

As the year moves along, tax season might be the last thing on your mind—but a quick check-in with your tax withholding now can save you from a major headache (and a hefty bill) come next spring.

Whether you're an employee receiving a paycheck or someone juggling multiple income sources, adjusting your withholding can help ensure you’re not caught off guard when it’s time to file your tax return.

If you recently filed and owed, you may have even been penalized for not having enough tax withheld throughout the year, and no one likes to give the IRS more money than necessary, so adjusting your withholding now can help avoid this from happening next year.

💡 Why Check Your Withholding?

Each time you get paid, your employer withholds a portion of your paycheck and sends it to the IRS. This amount is an estimate of what you’ll owe in taxes for the year. But life changes—like getting married, picking up a side gig, having a child, or earning a big bonus—can shift the balance. If too little is withheld, you might owe money (plus penalties). If too much is withheld, you’re essentially giving the government an interest-free loan.

Also, since the W4 form and withholding tables changed in 2019, many people have experienced fluctuations in their withholding that sometimes can only be corrected by asking to have an additional amount withheld per paycheck to cover the taxes that will be due at year end when filing.

🔍 When Should You Check?

It’s a good idea to review your withholding if:

• You owed money this year when you filed (or recieved a large refund)

• You got married or divorced

• You had a child or other change in dependents

• You picked up freelance or contract work

• You received unemployment benefits

• You bought a home

• Your income or filing status changed significantly

Even if none of these apply, checking mid-year is smart—especially before the final quarter of the year when there's still time to make corrections.

🧮 How to Check and Adjust Your Withholding

1. Use the IRS Tax Withholding Estimator. This online tool helps you figure out if you're on track:👉 IRS Withholding Estimator

   The IRS says it’s especially useful if you have multiple jobs, self-employment income, or big deductions, however it has been my personal experience that the IRS tool is confusing and can overcomplicate things. Check it out, but if you would like personalized help with this during the off-season, I can help you calculate and make the changes to your W-4 for around $250.

2. Update Your W-4. If the estimator suggests a change, complete a new Form W-4 and give it to your employer. You can adjust things like:

   • The number of dependents

   • Additional income or deductions

   • Extra withholding amounts per paycheck

3. Plan for Non-Wage Income. If you’re self-employed or earn income outside of a W-2 job, consider making estimated quarterly payments to the IRS to avoid underpayment penalties, or opt to have additional taxes withheld from your W2 job.

   
   

📆 Don’t Wait Until December

Waiting until the end of the year gives you less time to make meaningful changes. The earlier you check your withholding, the more flexibility you have to spread out any adjustments across future paychecks.

✅ Bottom Line

A quick review now can help you:

• Avoid unexpected tax bills at tax time next year

• Potentially reduce penalties and interest

• Possibly keep more money in your pocket throughout the year

Stay ahead of the game, and next tax season might just be your smoothest one yet.

Need Help? Book an advisory session with Casler Financial and we can help you make sure things are on track.

https://www.caslerfinancial.com/scheduling