Most taxpayers get a refund when they file their annual tax return, but that’s not true for everyone. Some taxpayers end up with a balance due because they don’t have enough withheld from their paychecks, they earned more than usual, or their tax situation changed and they no longer qualify for tax breaks they used to get.
The good news: with some planning, you can avoid owing money next year.
Adjust your withholding
One of the easiest ways to avoid a tax time surprise is to check your withholding every year. You should also review your W-4 anytime your personal or financial situation changes.
If you owed the IRS at tax season, it may be time to update your W-4. Download the form from the IRS website, fill in your information, and submit it to your employer. We provide ez step-by-step instructions on how to fill out your W-4.
To see whether you’re on track for a bill or a refund, use the IRS withholding calculator. It shows you what adjustments to make so the right amount of tax comes out of your paycheck. If too much is withheld, you’ll get a refund. If too little is withheld, you may end up owing.
Pay estimated taxes if you’re self-employed
Do you work in ride-sharing or food delivery? Have your own business? You may need to make quarterly estimated tax payments.
This typically applies to self-employed workers, freelancers, and contractors, since taxes aren’t automatically withheld from their pay. If you expect to owe more than $1,000 when you file, you’ll need to pay estimated taxes. For the 2026 tax year, payments are due April 15, June 15, September 15, and January 15, 2027.
Saving for retirement can reduce your taxable income
Saving for retirement helps you save on taxes now and live comfortably later.
For 2026, a traditional IRA lets you set aside up to $7,500 ($8,600 if you’re 50 or older). If you want to save more, your employer’s 401k plan may be a better option — you can contribute up to $24,500 this year ($32,500 if you’re 50 or older, or up to $35,750 if you’re between 60 and 63 and your plan allows the higher catch-up).
Aim to save as much as you can. Every dollar you contribute lowers your taxable income, which means less income tax owed.
Be aware that unemployment benefits are taxable
It’s common to collect unemployment benefits to stay afloat between jobs. But many people don’t realize this income is taxable.
If you don’t have taxes withheld (or too little is withheld), you may end up with a tax bill or a smaller refund than expected. To avoid surprises, complete Form W-4V, Voluntary Withholding Request, so taxes are withheld from each unemployment check.
Hold on to valuable receipts
When you file, you can either itemize deductions or take the standard deduction. For tax year 2026, the standard deduction is:
- $16,100 for single filers or married filing separately
- $24,150 for head of household
- $32,200 for married couples filing jointly
If your deductible expenses go above your standard deduction amount, itemizing makes more sense. The IRS lets you deduct things like non-reimbursed medical and dental expenses, mortgage interest, charitable contributions, and gambling losses.
Holding on to the right receipts throughout the year can save you money at tax time.
Use tax software and plan ahead
Using online tax software helps minimize mistakes and can uncover tax breaks you didn’t know existed. Check out our article on the most commonly missed tax breaks.
The best way to avoid piling up debt to the IRS is to have enough tax withheld from your paycheck throughout the year. Quarterly estimated payments are another option — this lets you pay as you earn instead of facing one large bill at tax time.
Here at ezTaxReturn, it’s fast and ez to get your biggest possible refund.
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
