03/31/2026
Tax Tip of the Day – Understanding Tax Liability
A lot of people think if they don’t get a refund, something was done wrong. That’s not always true.
Your tax liability is the total amount of tax you owe based on your income for the year.
Your withholdings are what you already paid in throughout the year from your paycheck.
So at tax time:
• If you paid more than your liability → you get a refund
• If you paid less than your liability → you owe
• If it’s close → you did your withholdings just right
A big refund doesn’t always mean better — it just means you gave the IRS an interest-free loan all year.
The goal is owing a little or getting a small refund, because that means your money stayed in your pocket all year instead of the government’s.
If you want to adjust your withholdings for next year, I can help you fill out a new W-4 so you’re not surprised at tax time.
— Bradfute’s Tax Solutions LLC