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Tax Withholding

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Tweaking 2026 withholdings: boost take-home pay with caution
business4 months ago

Tweaking 2026 withholdings: boost take-home pay with caution

Treasury Secretary Scott Bessent urged workers to update their paycheck withholdings for 2026 to increase take‑home pay, but tax experts warn that mistakes could trigger a tax bill; the recommended approach is to review your 2025 return, use the IRS tax withholding estimator to generate an updated Form W-4, and tailor withholding for changes in income, filing status and dependents. A quick check can be done by comparing your 2025 total tax to the number of 2026 pay periods, and note that IRS withholding tables have not yet been updated, which can affect refunds.