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For most filers, the tax deadline is approaching and it may be wise to adjust your 2026 payroll withholding if your refund or unpaid balance is higher than expected.
Typically, workers ask employers to withhold changes through Form W-4, which includes marital status, number of jobs, dependents, and other details.
For mid-year renewals, the form suggests using the IRS’s withholding estimator as the “most accurate” instruction.
This free tool generates a pre-filled W-4 (or W-4P if you have pension income) after asking questions about you and your spouse, your income, adjustments, deductions, and credits. But experts say that may not be enough for all filers.
How tax withholding has affected filers this season
About 66% of individual tax returns received refunds during the 2026 filing season, up from about 62% at about the same time last year, according to the latest IRS data through April 17.
Treasury Secretary Scott Bessent said at a White House press briefing on April 15 that workers should renew their payroll deduction withholdings in 2026 for an “automatic increase in real wages.”
However, some tax experts criticized this advice, noting that workers would need to calculate withholding based on their unique circumstances.
Experts explain how the IRS’ withholding estimation tool can help and who should use it.
What you need to know about IRS tax withholding tools
“The IRS’s tax withholding estimation tool is actually a powerful tool,” says Roberts, a certified financial planner and managing owner of Secure Tax and Accounting, a financial firm in Hayward, California, especially for W-2 workers in “simple situations.”
But experts say it can fall short amid tax complexities such as multiple sources of income, side jobs, bonuses, stock-based compensation and rental income.
Accuracy also depends on entering the correct information. The IRS says you’ll need your most recent tax returns, most recent pay stubs, records of each income you earn, and details about any tax breaks.
Another important detail is that the IRS’s withholding tools only provide “point-in-time estimates,” said CFP Mark Stancato, founder of VIP Wealth Advisors in Decatur, Georgia. “If your income changes mid-year, your results can quickly become outdated.”
The IRS recommends updating payroll withholding for “major life changes,” such as a new job or side job, a major change in income, marriage or divorce, birth or adoption, or other events.
Additionally, the agency says that if you change the withholding amount during the year, you may need to make another adjustment in late December to ensure the appropriate amount is withheld the following year.
