US Treasury Secretary Scott Bessent said during a White House press briefing last week that 'it's been a greattax season' for Americans, and that employees should update their paycheck withholdings for 2026.

'I want to encourage everyone out there watching today to change their withholding if they haven't already done so,' he had said. '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.'

His advice comes as Internal Revenue Service data showed that the average US tax refunds as of 10th April rose 11.2 per cent this tax season to $3,397 compared to $3,055 in the same period a year ago. The data was compiled from 114 million individual tax returns out of the 164 million expected through the April 15 deadline.

Bessent essentially urged people to inform their employers via the W-4 form to lower how much federal tax should be taken from their paychecks. The 2026 W-4 form was revised to include detailed worksheets to accommodate new tax deductions.

In short, paycheck withholdings are 'simply estimates' of a year's total taxes, certified financial planner John Nowak recently told a media outlet. According toApspayroll, people should generally review W-4 forms after major life events, such as starting a new job, getting married, having a child, or if you owed money or got a large refund last tax season.

For 2026, you could reduce withholdings if your refund was larger than expected or increase them if you had an outstanding balance. However, Nowak cautioned that changing paycheck withholdings could be tricky and any mistakes could have 'negative consequences' like penalties during next year's tax filing season.

The expert urged people to avoid making 'haphazard changes' to the W-4 form, adding that one should use theIRS tax withholding toolfor a more accurate estimate and an updated Form W-4 for the employer.

Bessent's advice also sparked an online debate on the social media platform X. Users claimed the hack does not work while some claimed taxes become complex in the following filing season.

'Screw this! I withhold MORE than the IRS calculator says I should, claim 0, and STILL have to pay in each year while I see story after story of government waste, fraud, and abuse. How bout I withhold NOTHING and keep ALL my money. THAT would feel like a "raise,"' anX user wrote.

Another X user with allegedly decades of payroll and tax experience warned people to avoid lowering paycheck withholding just to avoid paying taxes. 'HA! I've been doing taxes and mostly payroll for 28 years and DO NOT DO THIS. Adjust so you come out even. DO NOT go in and change s**t so you get more on your check. You'll be pissed next tax season if you do,' theuser wrote.

Source: International Business Times UK