If there’s one easy way to avoid a nasty tax surprise next spring, it’s checking your withholding now, while there’s still time to fix it. The IRS Tax Withholding Estimator is a free online tool that helps workers, retirees, and independent contractors see whether they’re on track, or headed for a refund or balance due.

 

When your withholding is off, two things can happen:

 

You get a big refund.  While this may sound very appealing, it means you’ve let the federal government hold your money interest-free all year.

 

You owe money, or worse, penalties. Under-withholding can lead to an unexpected tax bill and possible underpayment penalties. Adjusting now spreads the correction over the remaining paychecks instead of scrambling at year-end.

 

Who should check?

 

Anyone who changed jobs, added a side gig, had a major life change, got a big bonus, or receives retirement income should run the estimator. It takes just a few minutes and gives a clear picture of whether to adjust your Form W-4 or estimated tax payments.

 

A quick check today can save you from a financial plot twist next spring. The IRS Tax Withholding Estimator puts the control back in your hands. Visit the IRS website for more information at Tax Withholding Estimator | Internal Revenue Service.