Tax season has a funny way of making people suddenly interested in paperwork they ignored all year. One minute you are living your life, buying coffee, paying bills, and pretending your inbox is under control. The next minute, you are hunting for a Form W-2 like it contains the map to buried treasure. As tax season continues, the IRS has a simple but powerful message for taxpayers: do not wait until next filing season to think about next filing season.

The agency’s practical tip is to check your federal tax withholding now. That means reviewing how much federal income tax is being taken out of each paycheck, pension payment, or other eligible income source. The goal is not necessarily to get the biggest refund. The goal is to avoid unpleasant surprises, such as owing more than expected, facing an underpayment penalty, or giving the government too much of your money throughout the year when it could have stayed in your own budget.

In other words, the IRS is not asking taxpayers to become spreadsheet wizards overnight. It is asking them to do a paycheck checkup before the calendar runs away with the year. A few minutes of planning now can make next year’s tax filing experience feel less like a horror movie and more like a mildly annoying errand.

Why the IRS Is Talking About Next Year During This Tax Season

The IRS often uses tax season to remind people that filing a return is only one part of good tax management. The other part happens during the year, while income is being earned and tax is being paid through withholding or estimated payments. Federal income tax in the United States generally works as a pay-as-you-go system. Employees usually pay through payroll withholding. Self-employed workers, freelancers, investors, and retirees may need to pay through estimated taxes or voluntary withholding.

When withholding is accurate, tax time becomes easier. When it is too low, a taxpayer may owe money when filing. When it is too high, the taxpayer may get a larger refund, but that also means they lived all year with smaller paychecks than necessary. A refund can feel like a bonus, but technically it is often just your own money coming back after a long vacation at the IRS.

This is why the IRS recommends checking withholding early, especially after major life changes. Marriage, divorce, a new job, a second job, a new baby, a home purchase, retirement, side income, or changes in deductions and credits can all affect the final tax bill. Even if nothing dramatic happened, tax rules, income levels, and household expenses can shift enough to make last year’s withholding settings less accurate this year.

The Main IRS Tip: Check Your Tax Withholding Now

The center of the IRS message is simple: use the IRS Tax Withholding Estimator to see whether the right amount of federal income tax is being withheld. The tool is designed for workers with wages and retirees with pension or annuity income subject to federal withholding. It helps taxpayers estimate whether they are on track to owe, break even, or receive a refund.

After using the estimator, taxpayers can decide whether to submit a new Form W-4 to an employer or Form W-4P to a pension provider. These forms tell the payer how much federal income tax to withhold. The IRS estimator can also help generate a pre-filled form, making the process less intimidating for people who hear “tax form” and immediately want to lie down.

The key is timing. Checking withholding in January is ideal, but checking during tax season is still useful. If you discover that too little tax is being withheld, you may be able to increase withholding for the rest of the year. If too much is being withheld, you may be able to adjust your W-4 and increase take-home pay. Either way, you gain more control before next year’s return is due.

What You Need Before Using the IRS Tax Withholding Estimator

Tax planning sounds complicated, but the estimator mainly needs ordinary financial information. Before starting, gather your most recent pay stubs, your spouse’s pay stubs if you file jointly, your most recent federal tax return, and records for other income. If you have self-employment income, gig work, Social Security benefits, investment income, or itemized deductions, keep those numbers nearby too.

The tool asks about filing status, income, dependents, deductions, adjustments, and credits. It does not require personal details such as your name, Social Security number, address, or bank account information. That matters because taxpayers should always be cautious online. If a “tax calculator” asks for sensitive identity or banking information before giving a basic estimate, that is a red flag wearing a neon hat.

Example: A Two-Income Household

Consider a married couple filing jointly. One spouse starts a new job in March, while the other receives a raise in June. If both spouses filled out withholding forms as though each job were the only household income, their combined withholding might be too low. The result could be a surprise balance due next April. A midyear withholding checkup can help them adjust each W-4 so their total tax payments better match their expected tax liability.

Example: A Worker With a Side Gig

Now imagine an employee who also earns money from freelance design work. The employee’s regular paycheck has withholding, but the freelance income may not. If that extra income grows, the taxpayer could owe more at filing time. They may choose to increase withholding from wages or make quarterly estimated tax payments. The important thing is not ignoring the side income until tax software says, “Surprise!”

Who Should Pay Extra Attention to Withholding?

Everyone can benefit from a withholding review, but some taxpayers should be especially alert. Two-income families, people with multiple jobs, seasonal workers, retirees, newly married couples, divorced taxpayers, parents with a new child, homeowners, gig workers, and people with investment income are more likely to see changes in their tax picture.

Taxpayers who usually owe money should also review withholding. So should taxpayers who receive very large refunds. A large refund is not automatically bad, especially for people who use it as forced savings, but it may indicate that too much money is being withheld during the year. Adjusting withholding can improve monthly cash flow, which may help with rent, groceries, debt payments, emergency savings, or the mysterious household category known as “why is everything more expensive again?”

Do Not Forget Estimated Tax Payments

Withholding is only one way to pay federal income tax during the year. Estimated tax payments are another. These payments are common for self-employed individuals, independent contractors, investors, landlords, partners, and people with income that is not automatically subject to withholding.

Generally, taxpayers may need to make estimated payments if they expect to owe at least $1,000 in tax after subtracting withholding and refundable credits, and if their withholding and refundable credits are less than certain safe-harbor amounts. Estimated taxes are usually paid quarterly, although taxpayers can pay more frequently as long as enough is paid by the applicable due dates.

This is where planning becomes valuable. A freelancer who waits until April to think about taxes may discover that income tax and self-employment tax add up quickly. A freelancer who sets aside a percentage of each payment and reviews estimated tax obligations quarterly is much less likely to experience the “I made money, so why do I feel broke?” tax-season moment.

Tax Law Changes Make Checkups Even More Important

Tax rules can change from year to year, and withholding tables may be updated to reflect new laws. Recent IRS updates to its Tax Withholding Estimator account for changes affecting certain deductions, credits, tips, overtime, and senior-related tax benefits. That means taxpayers who rely on old assumptions may not be seeing the full picture.

This does not mean every taxpayer needs to become a tax policy expert. It does mean taxpayers should use current tools, not old estimates saved in a forgotten folder from three years ago. A current estimator reflects current rules more accurately than guesswork, workplace gossip, or advice from a cousin who “knows taxes” because he once got a big refund in 2017.

Use an IRS Online Account to Stay Organized

Another smart step for next year is creating or signing in to an IRS Individual Online Account. Through an online account, taxpayers can view certain tax records, payment history, balances, digital notices, information return documents, and other account details. This can be useful when preparing a return, verifying estimated payments, checking prior-year information, or resolving basic questions without waiting on hold.

An IRS online account can also help taxpayers manage payment plans and access identity protection tools. For many people, the hardest part of tax filing is not the math; it is finding the right information at the right time. Keeping records accessible can reduce stress and make next year’s filing process smoother.

Protect Yourself With an IP PIN

Tax identity theft remains a serious concern. One useful protection is an IRS Identity Protection PIN, often called an IP PIN. This six-digit number helps prevent someone else from filing a tax return using your Social Security number or Individual Taxpayer Identification Number. The IP PIN is known only to the taxpayer and the IRS and must be used when filing a federal return.

Taxpayers who can verify their identity may request an IP PIN proactively, even if they have not been victims of identity theft. Parents and legal guardians may also request one for dependents. This is especially helpful because tax identity theft often becomes visible only when a real return is rejected as a duplicate. At that point, the situation is fixable, but it is nobody’s idea of a relaxing weekend activity.

File Electronically and Plan for Direct Deposit

For the current filing season, the IRS continues to encourage electronic filing and direct deposit as the fastest way to receive refunds. Taxpayers who expect refunds should make sure they have accurate banking information ready. As federal payments continue shifting away from paper checks, direct deposit is becoming even more important.

Taxpayers without a bank account may want to explore safe banking options well before filing. Waiting until the last minute can slow down refund processing or create unnecessary confusion. The same principle applies to tax documents, identification, prior-year returns, and account access: the best time to prepare is before you are staring at a deadline with one eye twitching.

Free Filing and Free Tax Help May Be Available

Many taxpayers qualify for free filing resources. IRS Free File offers guided tax preparation software for eligible taxpayers, and Free File Fillable Forms are available for people who are comfortable preparing their own returns. Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs may also provide free basic tax return preparation for qualifying individuals, including seniors, people with disabilities, limited-English-speaking taxpayers, and people with modest incomes.

These programs are especially helpful for taxpayers who want accurate filing support but do not want to pay for unnecessary extras. The main caution is to begin from official IRS or trusted government pages when looking for free filing options. Search results and ads can be confusing, and “free” sometimes arrives with more strings than a holiday gift-wrapping station.

Common Mistakes That Lead to Tax-Time Surprises

One common mistake is assuming last year’s refund means this year will be fine. A refund from one year does not guarantee a refund the next year. Income, deductions, credits, family status, and withholding can all change.

Another mistake is ignoring non-wage income. Interest, dividends, capital gains, rental income, unemployment compensation, self-employment income, and taxable retirement income can all affect the final tax bill. If tax is not withheld from these sources, estimated payments or extra withholding may be needed.

A third mistake is submitting a W-4 once and never looking at it again. Your Form W-4 is not a museum artifact. It can be updated when your situation changes. Reviewing it annually is a simple habit that can prevent confusion later.

Finally, taxpayers sometimes confuse a bigger refund with better tax planning. A refund is nice, but it should be intentional. Some people prefer a refund because it helps them save. Others prefer more money in each paycheck. The best choice depends on your budget, discipline, debt, savings goals, and comfort level. The IRS tip is not “never get a refund.” It is “know what is happening before tax day surprises you.”

A Practical Tax Planning Checklist for Next Year

1. Review Your Pay Stub

Look at federal income tax withholding, year-to-date income, pre-tax deductions, and any changes in benefits. If your paycheck looks different from last year, your tax outcome may look different too.

2. Use the IRS Tax Withholding Estimator

Run the numbers with current income, filing status, dependents, deductions, and credits. Save or print the results for your records.

3. Update Form W-4 if Needed

If the estimator recommends a change, submit a new W-4 to your employer. Do not send Form W-4 to the IRS. Your employer uses it for payroll withholding.

4. Track Side Income

Keep records for freelance work, app-based income, consulting, rental payments, investment income, and other earnings. Set aside money for taxes as income arrives.

5. Consider Estimated Payments

If withholding will not cover your expected tax, review whether quarterly estimated payments are needed. This is especially important for self-employed taxpayers.

6. Organize Tax Documents Early

Create a digital or physical folder for Forms W-2, 1099, 1098, charitable donation records, medical expense records, business receipts, and education-related forms.

7. Protect Your Identity

Consider requesting an IP PIN, use strong passwords, avoid suspicious tax emails or texts, and never share sensitive information with unverified sources.

Experiences Related to the IRS Tip for Next Year

Many taxpayers learn the value of withholding checkups the hard way. One common experience involves the taxpayer who gets a promotion and celebrates the raise without adjusting anything else. The bigger paycheck feels great for several months. Then tax season arrives, and the return shows a balance due because the withholding did not fully keep pace with the household’s new income. The raise was still good news, of course, but the tax surprise could have been softened with one midyear review.

Another familiar story is the newly married couple filing jointly for the first time. Each spouse may have had a simple tax life as a single filer. Together, however, their combined income, credits, deductions, and withholding can create a different result. If both spouses work, each employer only sees one paycheck, not the full household picture. That is why two-income couples can be more vulnerable to under-withholding. A withholding estimator helps connect the dots before those dots become a bill.

Parents also experience major tax changes. A new child may affect credits, filing decisions, dependent information, health insurance, childcare expenses, and household budgeting. In the happy chaos of diapers, bottles, and sleep schedules that look like abstract art, tax withholding is not usually the first thing on anyone’s mind. Still, updating tax information after a birth or adoption can help the family’s paycheck better match its new financial reality.

Retirees have their own version of this story. A taxpayer who leaves full-time work may begin receiving pension payments, Social Security benefits, retirement account distributions, or part-time wages. Some income may have withholding; some may not. A retiree who assumes taxes will work exactly as they did during employment may be surprised. Using Form W-4P for pension or annuity withholding, reviewing estimated tax needs, and checking taxable income sources can make retirement tax planning much calmer.

Gig workers and freelancers may have the biggest learning curve. When someone moves from employee income to independent work, no employer is automatically withholding federal income tax. The full payment lands in the bank account, which feels wonderful until it becomes clear that part of that money belongs in the tax bucket. Experienced freelancers often create a separate savings account for taxes, track income monthly, and review estimated payments quarterly. That system may not be glamorous, but neither is panic-searching “how to pay IRS” at midnight.

Seasonal workers also benefit from planning. Someone who works only part of the year may have irregular income and withholding. A summer job, holiday retail position, or temporary contract can affect the annual return differently than a steady year-round paycheck. Checking withholding during or after seasonal work helps prevent over-withholding or under-withholding.

The broader lesson is that tax planning is not only for accountants or people with complicated investments. It is for anyone whose life changes. And life has a habit of changing without asking whether your W-4 is ready. A simple annual checkup can turn tax season from a guessing game into a manageable routine.

Final Thoughts: A Small Tax Move Now Can Save a Big Headache Later

As tax season continues, the IRS tip for next year is refreshingly practical: check your withholding now. This single step can help you avoid owing more than expected, reduce the risk of penalties, or increase your take-home pay if too much is being withheld. It can also help you understand how life changes, side income, retirement income, and updated tax rules may affect your next return.

Tax planning does not need to be dramatic. You do not need a wall of calculators, three monitors, and a dramatic soundtrack. Start with your pay stubs, use the IRS Tax Withholding Estimator, update your W-4 if needed, track income that does not have withholding, and keep your records organized. Future youthe one filing next year’s returnwill be deeply grateful.

Note: This article is for general educational purposes only and should not be treated as personalized tax, legal, or financial advice. Tax situations vary, and taxpayers with complex income, business activity, investments, retirement distributions, or major life changes should consider speaking with a qualified tax professional.