Labor & Taxes
Lower IRS withholdings do not mean paying less tax, warns Deco Proteste
Deco Proteste warns that lower monthly IRS tax withholdings, which increase disposable income, do not reduce the final tax liability calculated next year and may lead to smaller refunds or tax payments. Additionally, the deadline to request installment payments for 2025 IRS tax returns ends Tuesday, September 15, 2026, for eligible taxpayers who filed by June 30.
Why it mattersIf you are seeing more money in your monthly paycheck due to recent IRS withholding changes, be aware that this is not extra income but an advance adjustment; you may need to save it to cover a potential tax bill next year, especially if you also have an active installment plan for previous taxes.
