US Treasury Secretary Scott Bessent speaks during a press briefing in the Brady Briefing Room at the White House in Washington, DC, on April 15, 2026.
Brendan Smialowski | Afp | Getty Images
After filing your 2025 tax return, there’s plenty of time for 2026 changes that could improve your situation for next season, experts say.
One option could be updating your paycheck withholding — for a bigger or smaller refund — which can be tricky, according to tax experts.
While talking about President Donald Trump’s signature tax breaks this week, Treasury Secretary Scott Bessent said workers should update their withholdings for 2026.
“I want to encourage everyone out there watching today to change their withholding if they haven’t already done so,” he said during a White House press briefing Wednesday.
“If you change your withholding, then you will get an automatic real wage increase … on a weekly or a monthly basis, and you will be able to keep more of your money this calendar year,” Bessent said.
But some tax experts have been quick to criticize this advice on social media. The withholding process isn’t simple, and mistakes could result in taxes owed for 2026.
Enacted in July, Trump’s “big beautiful bill” included new 2025 deductions for tip income, overtime earnings, seniors and auto loan interest, among other provisions.
But the IRS didn’t update withholding tables for employers, which has contributed to higher tax refunds for many filers this season. As of April 3, the average refund amount for individual filers was $3,462, up from $3,116 about one year ago, according to the agency.
However, blanket suggestions to change paycheck withholdings could have “negative consequences” during next year’s tax filing season, according to certified financial planner John Nowak, founder of Alo Financial Planning in Mount Prospect, Illinois.
Paycheck withholdings are “simply estimates” of the year’s total taxes, said Nowak, who is also a certified public accountant.
For 2026, you may lower withholdings if your refund was larger than expected, or increase them if you had a balance due. It should also be updated for “changes in income, marital status and children,” he said.
Rather than making “haphazard changes,” consider using the free IRS tax withholding estimator, which provides estimates and an updated Form W-4 for your employer, Nowak said.
The Treasury did not respond to CNBC’s request for comment.
‘Quick calculation’ for your withholding
Another “quick calculation” to check your 2026 paycheck withholding is by reviewing the “total tax” on line 24 of the second page of your 2025 tax return, according to Tommy Lucas, a CFP at Moisand Fitzgerald Tamayo in Orlando, Florida. His firm is ranked No. 69 on CNBC’s Financial Advisor 100 list for 2025.
If your 2026 earnings and tax situation are the same as 2025, your total federal liability should also be similar, he said. That means you can divide your 2025 total tax by the number of pay periods for 2026 and compare that number to your federal tax withholding for each paycheck.
For many taxpayers, “not much is changing” in 2026 compared with 2025, Lucas said. One exception is Trump’s charitable deduction of up to $1,000 for single filers or $2,000 for married couples filing jointly who don’t itemize tax breaks.
If you’re not on track for total taxes paid in 2026, you could adjust your paycheck withholdings for the rest of the year, or make a payment of your shortfall directly to the IRS.