More taxpayers are owing the IRS in 2026, Arizona tax firm says

By AI, Created 4:36 AM UTC, June 02, 2026, /AGP/ – More Americans are arriving at tax season with balances due instead of refunds in 2026, and Cottonwood, Arizona-based P.TA Tax says changes in withholding, gig income and expired credits are driving the shift. The firm is urging taxpayers to adjust now so they do not get surprised at filing time.

Why it matters: - A larger share of taxpayers are seeing IRS balances due in 2026 instead of refunds. - The shift can hit household budgets unexpectedly, especially for people who have relied on refunds as a financial cushion. - P.TA Tax says proactive planning can help taxpayers avoid year-end surprises and improve cash flow throughout the year.

What happened: - P.TA Tax, a Cottonwood, Arizona tax preparation and advisory firm, is warning that more Americans are owing taxes in 2026. - The firm says the change is being driven by withholding adjustments, more gig and self-employment income, and changes to tax credits and deductions. - The firm is also fielding questions from local clients who expected refunds but found out they owed money instead. - A P.TA Tax Client Services Team member said many people are surprised this year because changes in income structure and tax credits are leading to unexpected balances due.

The details: - Recent changes in withholding tables may leave less tax taken out of each paycheck during the year. - Higher take-home pay during the year can translate into a tax bill at filing time if withholding is too low. - Freelance, contract and side-hustle income often does not include automatic withholding. - Many gig workers do not set aside enough money for taxes during the year. - Temporary pandemic-era tax benefits, including expanded child tax credits and other relief programs, have expired or returned to earlier levels. - Taxpayers who previously qualified for larger credits may now receive smaller refunds or owe money. - P.TA Tax says many taxpayers still wait until filing season to address tax issues instead of planning year-round. - The firm says that lack of ongoing forecasting and adjustments makes surprises more likely. - The firm says some local clients have come in expecting refunds and learned they owe several thousand dollars. - The team says those outcomes usually reflect changing tax rules and withholding, not a filing mistake. - P.TA Tax says it helps clients understand what they owe, why they owe it and how to reduce the chance of the same result next year. - The firm says its service model emphasizes clarity, speed, accuracy and personalized guidance. - P.TA Tax offers diagnostic-style reviews that examine past returns, current financial positioning and likely future outcomes. - The firm says that process can help clients optimize deductions and align tax planning with personal financial goals. - P.TA Tax advises taxpayers to review withholding, track all income sources, set aside taxes regularly, schedule a mid-year tax checkup and work with a professional. - The firm is based in Cottonwood and says its guidance is relevant beyond Arizona because the tax trend is national.

Between the lines: - The message is less about a single tax-law change and more about several smaller shifts adding up at once. - Refund expectations are being upended by income diversification and less predictable withholding. - The push for year-round tax management suggests more taxpayers may need to treat withholding and estimated taxes as ongoing financial tasks, not filing-season chores.

What’s next: - P.TA Tax expects taxpayers to keep feeling the effects of these changes as 2026 filing season progresses. - The firm is encouraging mid-year reviews and ongoing planning so taxpayers can adjust before year-end. - Taxpayers who want to avoid another surprise may need to update withholding, reserve money for non-W-2 income and revisit credits and deductions before filing time.

The bottom line: - In 2026, smaller paychecks can mean bigger tax bills later, and taxpayers who do not plan ahead are more likely to end up owing the IRS.