Are You Withholding the Right Amount of Tax for 2026?

As we head into a new year, now is a great time to double-check whether you’re withholding the right amount of federal income tax from your paycheck. Getting it right helps you avoid an unexpected tax bill—or giving the IRS an interest-free loan.

Why Your Withholding Might Need an Update

Several factors can change how much tax you owe, including:

• A raise or bonus
• A new job
• Marriage or divorce
• Having a child
• Starting Social Security or pension income
• Side income (1099, rental income, etc.)

Any time your income or family situation changes, your withholding may need to change too.

Reviewing Your W-4 for 2026

The IRS redesigned the W-4 a few years ago, and many people still haven’t updated it since.
A quick review can help ensure:

• You’re claiming the correct number of dependents
• You’ve adjusted for multiple jobs
• You’re accounting for other income not subject to withholding
• You’re capturing deductions you expect to take

Even if nothing major changed this year, it’s still smart to look at your W-4 annually.

How to Check Your Withholding

The IRS offers a simple tool: the Tax Withholding Estimator.
It lets you input your income, deductions, credits, and current withholding to see if you’re on track.

General rules of thumb:

• Owe money last year? Increase your withholding.
• Big refund? You may be withholding too much.
• Multiple jobs? Check for under-withholding, which is common.
• Side income? Consider additional withholding or quarterly estimated payments.

Small Adjustments Can Prevent Big Surprises

A 5–10 minute review now can save stress at tax time.
If you want help navigating your tax picture—or coordinating withholding with your broader financial plan—we’re always here to help.

Schedule a year-end review with Altitude Wealth Management anytime.

This material was prepared for Allan Gregory’s use.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. Altitude Wealth Management and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.