The Clark Howard Podcast

Episode Title: Tax Refunds & Withholding / Clarksplainer: Trump Accounts
Date: February 11, 2026
Host: Clark Howard
Co-host: Krista

Episode Overview

This episode is centered around year-to-year tax changes, maximizing the benefit of unexpected tax refunds, optimizing paycheck withholding, and understanding new "Trump accounts"—a government program for newborn savings. In addition, Clark and Krista answer listener questions about telehealth, utility payment strategies, Roth versus pre-tax retirement accounts, saving for private school, and how to save on expensive vet medications. The conversation exudes Clark's signature no-nonsense, frugal, and empowering style.

Key Discussion Points & Insights

1. Tax Refund Surprises in 2026

Clark explains how recent tax law changes are resulting in larger-than-expected refunds for many taxpayers and offers advice on what to do if you find yourself with extra money from Uncle Sam.

• (01:37 - 06:42)

  • Tax refunds are higher for many due to retroactive tax law changes and unchanged payroll withholdings.
  • "You could see a tax refund 25% or more higher than you expected, depending on your personal circumstances." (Clark, 03:06)
  • Clark's advice for windfall tax refunds:
    • First priority: Pay off high-interest credit card debt.
    • If debt-free: Invest in a Roth IRA for tax-free future growth.
    • Fun Spending? Only after essentials: “What people tend to do with a windfall is a certain amount of it, they just go have fun with. But if you have preexisting financial needs like carrying high interest debt or you're not saving enough in your opinion for your future, that's where using one time unexpected money becomes such a great thing.” (Clark, 05:32)

• Withholding adjustments:

  • If your employer hasn’t changed your withholding after the tax law update, you’re likely over-withholding for the current year—effectively giving the government an "interest-free loan."
  • Fix: Reduce withholding, increase 401(k) or Roth IRA contributions instead.

2. Listener Q&A

Clark and Krista tackle a variety of listener-submitted questions.

a. Telehealth & “One Medical” Update

• (07:05 - 09:56)
  • “I've loved being in One Medical. ... You pay an annual fee that's really very, very reasonable, particularly if you have a family.” (Clark, 08:25)
  • Amazon’s One Medical is praised for convenience, especially for travelers. Instant virtual visits, access to your electronic medical record, and an affordable annual fee.
  • Direct Primary Care: An alternative to One Medical—pay directly for care, skip insurance bureaucracy, and get more doctor face time.

b. Utility Payments – ACH vs. Card Fees

• (10:51 - 11:38)
  • Listener’s city charges 3% for credit and debit card payments, but ACH transfers are free.
  • “It's crazy that they're charging the same 3% on a debit card. That is unreasonable and foolish on the part of the utility.” (Clark, 11:04)
  • ACH is safe for utilities; for extra peace of mind, use a dedicated bank account for third-party ACH withdrawals.

c. 401(k) Pre-tax vs. Roth

• (12:00 - 13:47)
  • Listener aged 36 asks how to choose.
  • “You want to do Roth because tax rates are historically way low. ... There's an enormous advantage unless you're an ultra high income earner for you to do Roth.” (Clark, 12:07)
  • Traditional (pre-tax) is rarely optimal except for very high earners. Pay tax now, enjoy tax-free withdrawals in retirement.

3. Clarksplainer Segment: Trump Accounts

Clark’s deep dive into the new government-sponsored savings accounts for children and the risks they hold.

• (16:37 - 20:39)

  • What are Trump Accounts?

    • For a limited time, government gives $1,000 to newborns deposited in a specific account. Some employers and wealthy benefactors may match these funds.
    • Tax Trap Warning: “The Trump accounts were hurriedly drafted by the Congress. They were not well thought out, and they have all kinds of tax traps in them.” (Clark, 16:46)

  • Clark’s Guidance:

    • “If you get the $1,000 from the government—or your employer or a benefactor matches—take the free money, even though the tax implications are beyond lousy.” (Clark, 16:55)
    • Don’t fund these accounts with your own money due to the severe tax hit later.
    • For personal savings: Use a 529 Plan instead—tax-advantaged for education and eligible for tax-free rollover to Roth IRA (up to $35,000 if not used for college).

  • Memorable Quote:

    • “Free money, you take. Your hard-earned money going in—don’t do it.” (Clark, 18:51)

4. Listener Q&A: Saving for Private School/K-12

• (20:39 - 23:26)
  • 529 plans can be used both for college and (up to $10,000/year) for K-12 private schooling.
  • "You can use 529 money for that [private school] up to the cap, tax free. ... Using it for both purposes is ok.” (Clark, 21:50)
  • Suggestion: Use mental accounting (separate 529s) for private school vs. college, if it helps family budgeting.

5. Listener Q&A: Cancelling a Deceased Parent’s Cable Bill

• (23:26 - 27:12)
  • Listener’s friend has been paying a late parent’s cable bill for 4 years due to auto-debit and unhelpful customer service.
  • Clark’s advice:
    • Escalate via local TV "On Your Side" consumer reporters—"it will not only get this resolved quickly, it will also likely get back a fair amount of the money that the cable company swiped over the four years." (Clark, 24:40)
    • File a complaint at bbb.org; utility companies often respond quickly to BBB.
    • Reminder: "This points out how key it is to look at your credit card…statements, because who knows how many things like this are lurking in all of our lives." (Clark, 25:50)

6. Listener Q&A: Saving on Pet Medications

• (27:12 - 32:33)
  • Listener shares how Costco Pharmacy cut pet medication costs by more than half.
  • “That $100 monitor became $30. ... The $125 medicine became $83.33 a month. Still pricey, but a savings of $41.67 a month.” (Krista, 28:06)
  • Clark’s personal story: His dog is named "Kirkland Signature" and even the dog’s prescription label reads “Kirkland Signature Howard.”
    • “If you fill your pet meds elsewhere, in fact, there's now online sellers of pet meds that way undercut what you'd pay. So if you're not a warehouse club member...you can still save money for your pets buying from one of the online pharmacies.” (Clark, 31:17)
  • Bonus Tip: Even non-members at big-box stores can access pet meds via the pharmacy.

Notable Quotes & Moments

• On tax refunds: “Remember, the refund you're getting is your money that you paid in that you're now getting back.” (Clark, 03:27)
• On Trump accounts: “If the money’s given to you, you take it. ... Don't put your own money in a Trump account!” (Clark, 18:51)
• On cable bill auto-debits: “Phone number four to $5,000 down the toilet.” (Clark, 24:01)
• On naming his dog after Costco: “He named one of the dogs Kirkland Signature because he loves Costco so much.” (Clark, 29:16)

Timestamps for Important Segments

• [01:37] – Tax Refunds Overview
• [06:43] – Listener Q&A Begins
• [07:05] – Telehealth and One Medical
• [10:51] – Utility Payment Methods
• [12:00] – 401(k) Pre-tax vs. Roth
• [16:37] – Clarksplainer: Trump Accounts Explained
• [20:39] – Saving for Private School (529 Plans)
• [23:26] – Cancelling Deceased Parent's Cable Bill
• [27:12] – Saving on Pet Medications
• [29:01] – Kirkland Signature Dog Story

Tone & Takeaways

Clark’s advice throughout is pragmatic, direct, and rooted in his core philosophy: save more, spend less, and avoid rip-offs. He encourages using unexpected financial gains strategically for long-term benefit rather than fleeting pleasures and warns listeners to be vigilant against bureaucratic and corporate pitfalls. The episode is rich with practical, actionable tips—delivered in Clark’s trademark “no-fun-zone” style, but always in service of the listener’s financial well-being.

For more info and resources mentioned, visit clark.com and look out for Clark’s upcoming “Clark Stinks” Friday segment!