Treasury Sec Encourages Tax Withholding Adjustments, But Bigger Paychecks Could Cost Later
With the Tax Day deadline passed, Bessent wants Americans to take advantage of new policies that could result in more money each payday.
Black News 
Treasury Secretary Scott Bessent says taxpayers should adjust their tax withholding this year, which would put more money back into their paychecks.
With the Tax Day deadline passed, Bessent wants Americans to take advantage of new policies that could result in more money each payday. He encouraged taxpayers to get more out of this tax year by adjusting their withholding status.
“I want to encourage everyone out there watching today to change their withholding if they haven’t already done so,” he said during an April 15 White House press briefing recorded on C-SPAN.
According to USA.gov, tax withholding is the portion of a W-2 employee’s paycheck that is withheld and sent directly to the IRS to cover expected taxes owed. However, employees can adjust how much, if any, money is taken from their checks. This also depends on new life changes, such as having a child or holding multiple jobs.
“If you change your withholding, then you will get an automatic real wage increase … on a weekly or a monthly basis, and you will be able to keep more of your money this calendar year,” Bessent added.
This advice comes on the heels of Trump’s “One Big Beautiful” bill and during Financial Literacy Month. According to CNBC, the legislation implemented deductions for tips, overtime, and auto loan interest. However, the law took effect halfway through 2025, leaving employers without updated withholding tables, which also contributed to larger refunds.
While adjusters could see more money in the short term, this could come with its own drawbacks. With April as Financial Literacy Month, one should have an estimation of what they could owe next tax season.
If one received a higher-than-normal tax refund, it may make sense to lower their withholdings, even if no significant life changes occurred. However, they could run the risk of having a balance next season if they take back more than what Uncle Sam owes them.
Furthermore, tax experts say that tax withholding is a tricky situation, with everyday taxpayers unable to guarantee they will owe no money next season. Yahoo Finance also reports that one could incur underpayment penalties if one’s total withholding doesn’t cover 90% of the taxes on one’s returns.
However, taxpayers seeking to avoid overpayment can use the free IRS tax withholding estimator to estimate their expected taxes. While that can help employees make the best decision about withholding, it does not guarantee precise calculations, especially in more complex financial situations.
For those who don’t mind getting their money back at the end of tax season, they can skip out on the bigger paychecks, while also avoiding paying Uncle Sam further. On the other hand, those who could greatly benefit from keeping their money may find the adjustment worth any potential risk.
RELATED CONTENT: Here’s What The Average Refund Looks Like For 2026 Tax Day
