IRS Releases Draft 2026 Forms W-4 and W-4P
- Viktoriya Barsukova, EA, MBA
- Oct 9
- 1 min read
The IRS has issued a draft version of the 2026 Form W-4, Employee’s Withholding Certificate, reflecting major updates under the One Big Beautiful Bill Act (OBBBA). The new form expands to five pages and introduces additional deduction options to help employees better match withholding with their actual tax liability. While further revisions are expected before the final release, tax professionals can begin preparing clients who may benefit from these changes.
Key Updates to Form W-4:
Step 3 now has two separate lines: Line 3(a) for dependents and Line 3(b) for other credits. The child tax credit amount is blank to reflect OBBBA’s increase to $2,200 per child.
Step 4 has been fully redesigned. The “optional” label has been removed, and a new 15-line deductions worksheetcovers items such as qualified tips, overtime compensation, 2025 car loan interest, and an enhanced senior deduction.
A new “Exempt” checkbox replaces the previous handwritten “exempt” method.
The IRS also released a draft of the 2026 Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments, featuring similar structural and deduction updates for individuals with one or more pension income sources.
IRS Releases Draft 2026 Forms W-4 and W-4P
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