Tax Refunds, 401(k)s and New W-4s

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

• JulieJason.com: “’It's A Good Time To Check Your Tax Withholding’ by Julie Jason”
  • https://juliejason.com/select-columns/its-a-good-time-to-check-your-tax-withholding-by-julie-jason
    • Related column excerpt:
      • “Think about that for a moment. What’s the logic behind reducing your paycheck to lend money to the government -- just to have it refunded the following year? Isn’t it a better idea to have that same amount of money earn a 401(k) company match? (I wrote an earlier column on this topic, which you can find at Juliejason.com.)”
• Congress.gov: PUBLIC LAW 119–21—JULY 4, 2025
  • https://www.congress.gov/119/plaws/publ21/PLAW-119publ21.pdf
    • Related column excerpt:
      • “What’s more important this year is that your tax refund might be bigger than usual due to the One Big Beautiful Bill Act of 2025. To accommodate those changes, the IRS issued a new 2026 W-4, which is the form that tells your employer how much to withhold from your paycheck.”
• IRS: Tax Withholding Estimator
  • https://www.irs.gov/individuals/tax-withholding-estimator
    • Related column excerpt:
      • “To see how these changes affect you, try out the Tax Withholding Estimator at the IRS website, which is now updated with modifications for credits and deductions, including ‘no tax on tips, no tax on overtime, and other tax benefits.’”
• IRS: “Updated Tax Withholding Estimator lets millions of taxpayers take One, Big, Beautiful Bill changes into account when calculating their withholding”
  • https://www.irs.gov/newsroom/updated-tax-withholding-estimator-lets-millions-of-taxpayers-take-one-big-beautiful-bill-changes-into-account-when-calculating-their-withholding
    • Related column excerpt:
      • “To see how these changes affect you, try out the Tax Withholding Estimator at the IRS website, which is now updated with modifications for credits and deductions, including ‘no tax on tips, no tax on overtime, and other tax benefits.’”
• IRS: About Form W-4, Employee's Withholding Certificate
  • https://www.irs.gov/forms-pubs/about-form-w-4
    • Related column excerpt:
      • “You can see the 2026 version of the W-4 at the IRS webpage ‘About Form W-4, Employee’s Withholding Certificate.’”
• IRS: Tax Year 2025 1040 (and 1040-SR) Instructions
  • https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
    • Related column excerpt:
      • “The Deductions Worksheet recommends that taxpayers see the instructions for Schedule 1-A ‘for more information about whether you qualify for the deductions.’ They can be found in the instructions for Form 1040.”
• IRS: “IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill”
  • https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill
    • Related column excerpt:
      • “(Keep in mind that the standard tax deduction increases for 2026. See the IRS news release ‘IRS releases tax inflation adjustments for tax year 2026’ for more details.)”