IRS Tax Tool Updated to Reflect New Deductions

The tool has incorporated updates related to overtime pay, tip earnings, senior deductions, and car loan interest payments.

The Internal Revenue Service in Washington on Jan. 6, 2026. Madalina Kilroy/The Epoch Times

The Internal Revenue Service (IRS) enhanced its Tax Withholding Estimator tool to include updates to new credits and deductions made under the One Big Beautiful Bill, the agency said in a March 12 statement.

The Tax Withholding Estimator is a free tool for workers and retirees to estimate the federal income tax that must be withheld from their paychecks for the upcoming tax year.