IRS Warns All Americans to Make This Change for Bigger Paychecks

Millions of Americans received significantly higher tax returns this tax season as a result of sweeping changes to the tax code throughout the year. Now, Treasury Secretary Scott Bessent is offering a bit of a warning to taxpayers.

During a recent press conference, Bessent, who has served as the acting IRS Chief throughout most of the current presidential administration, sent a message to taxpayers about what they should do ahead of next tax season.

Increased Tax Returns

According to the IRS, refunds have been higher this year after the new tax deductions, with refunds up about 11% compared to the same period in 2025. As of April 2026, the average refund was over $3,400, up from roughly $3,116 in the previous year.

These increased refunds have been largely fueled by the new tax deductions implemented by the One Big Beautiful Bill (OBBB) Act. An estimated 4 in every 10 taxpayers qualified for at least one of the new tax deductions.

According to the IRS, those who were able to claim at least one of these deductions have seen an extra $775 refund on their tax return on average.

Adjust Tax Withholding

While many Americans are undoubtedly pleased to see an increased tax return, the reality is that this happened because the IRS has not updated withholding tables for employers following the new tax deductions. Bessent has urged taxpayers to change this.

During a recent press briefing, Bessent urged all American taxpayers to adjust theit tax withholding.

“I want to encourage everyone out there watching today to change their withholding if they haven’t already done so,” he said during a White House press briefing on Wednesday, via CNBC.

Bessent said that this would provide a "real wage increase," allowing taxpayers to take home more of their paychecks without having to wait until next season to claim their tax refund.

“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 said.

For 2026, you may want to lower withholdings on your regular paycheck if your refund was larger than expected, or increase them if you had a balance due.

Additionally, your withholding should always be updated for changes in income, marital status and children to make sure you are taking home the correct amount of money out of your paycheck.