When you start a new job, one of the first documents you’ll face is Form W-4. This certificate tells your employer how much federal income tax to take out of your paycheck and send to the IRS.
But for 2026, the W-4 is doing more heavy lifting than usual. Thanks to the 2025 Trump tax bill, the form now includes specific provisions for tips and overtime that could significantly boost your take-home pay. Plus, taxpayers 65 and older may be eligible for the new "bonus" deduction, which can also be included in your tax withholding.
