Check Your Withholding Before December: A 10-Minute Year-End Review

October is the last good moment to check whether your paycheck is withholding the right amount of federal tax. If you are short, you can still spread the catch-up over the remaining paychecks. If you are over-withholding, you can stop lending the IRS money. Here is a quick review you can do with your latest pay stub.

Step 1: Find your year-to-date federal withholding

Your most recent pay stub shows federal income tax withheld year to date. Write that number down, along with how many paychecks you have left this year.

Step 2: Project the full-year total

Add your year-to-date withholding to what the remaining paychecks will withhold at the current rate.

Example: a single filer earning $65,000, paid biweekly, with $190 of federal tax withheld each paycheck. After 20 paychecks, year-to-date withholding is $3,800. With six paychecks left, the full-year total is $3,800 + (6 × $190) = $4,940.

Step 3: Estimate what you will actually owe

The simplest way is the IRS Tax Withholding Estimator on irs.gov, which uses your pay stub and your other income. For a rough number, compare against the worked examples in our salary guides. For a single filer earning $65,000 with no other income, federal income tax comes to about $5,620.

Step 4: Compare and decide

ResultWhat it meansWhat to do
Projected withholding is below your expected taxYou are shortIncrease withholding for the rest of the year
Projected withholding is closeYou are on trackNothing to change
Projected withholding is well above your expected taxYou will get a large refundLower withholding in the new year

In the example, the shortfall is $5,620 − $4,940 = $680. Spread over six remaining paychecks, that is about $113 extra per paycheck. Wait until December and the same shortfall lands on two or three paychecks, so the earlier you act, the smaller each adjustment.

How to make the change

Submit a new W-4 to your employer, usually through the HR or payroll portal.

  • To withhold more: enter an extra dollar amount per paycheck in Step 4(c).
  • To account for a second job or a working spouse: use Step 2, or the IRS estimator.
  • To update dependents: use Step 3.

Changes take effect on a future paycheck, not the one already issued, so submit it in the next few weeks.

Good to know: late withholding still counts

Federal withholding is treated as if it were paid evenly throughout the year, even when you increase it late. That means raising your withholding in the fall can fix an underpayment that would otherwise trigger a penalty. Estimated payments don't work that way, so withholding is often the easier fix for a W-2 employee.

When to do this review

You are most likely to be under-withheld if, this year, you:

  • Started a second job or side business
  • Got married or divorced
  • Had a large raise, bonus, or commission
  • Changed jobs partway through the year
  • Stopped claiming something that used to lower your withholding, such as a dependent

If you are over-withholding

A refund of $2,400 means you overpaid by about $92 on each of 26 paychecks. The money is returned without interest. If your refund is large and your situation is stable, lowering your withholding next year puts that cash in your pocket earlier. See our guide on how to adjust your W-4 to increase take-home pay.

If you also earn freelance income

Nothing is withheld on freelance payments, so the final estimated tax payment for 2026 is due January 15, 2027 (the date can shift for weekends and holidays). Raising your W-4 withholding at your regular job can also cover some of what you owe.

Check your numbers

Run your salary and filing status through the PayGauge take-home pay calculator to see what your federal withholding should look like per paycheck.

This article is for general information, not tax advice. The IRS Tax Withholding Estimator or a tax professional can give you a figure for your situation.

Location: Washington, DC, USA

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