IRS Drafts 2026 Form W-4 with New Deduction Options
by Aaron
The IRS has released a draft 2026 Form W-4 to reflect tax changes in the One Big Beautiful Bill Act (OBBBA). Key updates:
- New deductions: Employees can claim deductions for qualified tips, overtime pay, and certain 2025 car-loan interest, plus an enhanced senior deduction.
- Act early if needed: Anyone who wants these deductions reflected in 2025 withholding must submit a new 2025 Form W-4 to their employer.
- Estimator not updated: The IRS Tax Withholding Estimator does not yet include these new deductions.
The draft is not final; rules and dollar limits may change.
Next step: Follow the IRS for the official form and updated guidance: irs.gov.