Typically, workers ask employers for withholding changes via Form W-4, which includes marital status, number of jobs, dependents and other details.
For midyear updates, the form suggests using the IRS tax withholding estimator for the “most accurate” instructions.
The free tool generates a pre-filled W-4 (or W-4P for pension income) after asking about you and your spouse, earnings, adjustments, deductions and credits. But it may not be enough for all filers, experts say.
How withholdings impacted filers this season
During a White House press briefing on April 15, Treasury Secretary Scott Bessent said workers should update their 2026 paycheck withholdings for an “automatic real wage increase.”
But some tax professionals criticized this advice, noting that workers should calculate withholdings based on their unique situation.
Here’s how the IRS tax withholding estimator can help — and who should use it, according to experts.
What to know about the IRS tax withholding tool
“The IRS withholding estimator is actually a solid tool,” especially for W-2 workers with “straightforward situations,” said certified financial planner Joon Um, managing owner of financial firm Secure Tax and Accounting in Hayward, California.
However, it can fall short amid tax complexity, such as multiple sources of income, side businesses, bonuses, stock-based compensation, rental income and more, experts say.
Accuracy also depends on entering the correct information. You’ll need the most recent tax return, latest pay stubs, records for each type of income and details about tax breaks, according to the IRS.
Another key detail is that the IRS tax withholding tool only provides “a point in time estimate,” said CFP Mark Stancato, founder of VIP Wealth Advisors in Decatur, Georgia. “If income changes midyear, the results can quickly become outdated.”
The IRS recommends updating paycheck withholdings for any “major life changes,” such as a new job or side gig, big income shifts, marriage or divorce, childbirth or adoption, and other events.
Plus, if you change withholdings during the year, you may need another adjustment in late December to withhold the right amount for the following year, according to the agency.
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