But that just means you overpaid your taxes the previous year. Now Treasury Secretary Scott Bessent is urging Americans to review their tax withholdings to increase their paychecks. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers.
Here's how Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this 'explosion' Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here's how to fix it ASAP On April 15, during a White House press briefing about President Donald Trump's tax breaks, Bessent encouraged workers to change the amount of income tax their employer deducts from each paycheck, if they haven't done so already (1). "If you change your withholding, then you will get an automatic real wage increase ... on a weekly or a monthly basis," he said, adding that "you will be able to keep more of your money this calendar year." But there's a catch: Changing your withholding requires precision and can be tricky. If you make a mistake, you could end up owing money next tax season.
The One Big Beautiful Bill Act (OBBBA), which was enacted last July, included new tax deductions for the 2025 tax year, including deductions for tax income, overtime earnings and auto loan interest. For some people, that resulted in a higher-than-usual refund. But that's not the main reason.
Since OBBBA was enacted partway through the year, the IRS didn't update its employer withholding tables (which help employers calculate the amount of federal income tax to deduct from your paycheck). As a result, many Americans received a higher tax refund this tax season. The average refund is $3,462 (as of April 3), according to IRS data.
That's up more than 11% from last year's average refund of $3,116 (2). Changing your withholding doesn't magically put more money in your wallet. You still owe the same amount of tax.
Withholding simply changes how much money your employer withholds from your paycheck to cover your taxes. If you didn't do so on your 2025 tax return, you have time to make changes for the 2026 tax year. While this could improve your tax situation, you'll also want to be aware of the risks.
Extract — continue reading at the source.
