Tax planning is not something you should think about only when filing season arrives. For many taxpayers, one of the most important steps they can take during 2026 is reviewing their tax withholding. At AIM Financial, we help clients take a proactive approach to tax planning so they can make informed financial decisions throughout the year.

Why Tax Withholding Matters

The federal income tax system generally operates on a “pay-as-you-go” basis. Taxes are paid throughout the year through paycheck withholding or estimated tax payments. If you do not pay enough during the year, you could face a larger tax bill—and potentially an underpayment penalty—when you file your return.

On the other hand, having too much withheld can mean you are giving the government an interest-free use of your money until you receive a refund. The goal is to have your withholding reasonably match your expected tax liability.

When Should You Review Your Withholding?

A withholding review can be especially valuable after a major financial or life change. Consider reviewing your tax situation if you:

• Changed jobs or started a second job
• Received a significant raise, bonus, or commission
• Started receiving retirement income
• Became self-employed
• Sold an investment or other asset for a gain
• Experienced a marriage, divorce, or change in dependents
• Experienced changes in deductions or tax credits

The IRS recommends checking withholding when tax laws or personal financial circumstances change.

2026 Tax Changes Make Planning Important

For 2026, the federal standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. Other tax provisions and limits have also changed for the 2026 tax year.

These changes can affect your overall tax picture, making it worthwhile to revisit your withholding rather than simply relying on last year’s numbers.

Make Tax Planning Part of Your Financial Plan

Tax planning should work alongside your broader financial strategy. At AIM Financial, we believe reviewing your tax position throughout the year can help you make better decisions and avoid unnecessary surprises.

If your income or financial circumstances have changed in 2026, now may be a good time to review your withholding and estimated tax payments with a qualified tax professional.