Updated October 29, 2026. Quick answer: Worksheet 1-3 in Publication 505 (2026) projects your 2026 tax in eleven lines: expected adjusted gross income, minus deductions, tax from the rate worksheets, plus other taxes, minus credits. Its result goes on line 1 of Worksheet 1-5, which compares it with what your withholding will pay.
What this worksheet is for
“Use this worksheet to figure your projected tax for 2026.” “Note: Enter combined amounts if Married filing jointly.” The answer on line 11 feeds Worksheet 1-5, which decides whether your paycheck withholding should change.
Lines 1 to 4: income, deductions and tax
| Line | What it asks |
|---|---|
| 1 | “Enter amount of adjusted gross income (AGI) you expect in 2026.” If you are self-employed the line first subtracts the deduction for self-employment tax from Worksheet 2-3, line 11. |
| 2 | Your deductions: the standard deduction from Worksheet 2-4 plus up to $1,000 ($2,000 for married filing jointly) of cash or check gifts to charity, or your itemized deductions, plus any qualified business income deduction and any Schedule 1-A deduction. |
| 3 | “Expected taxable income. Subtract line 2 from line 1.” |
| 4 | Tax on line 3. The line sends you to Worksheet 1-4 when there are no capital gains or qualified dividends, to Worksheet 2-7 when there are, and to Worksheet 2-8 when foreign earned income was excluded. |
Lines 5 to 11: other taxes, credits and the total
| Line | What it asks |
|---|---|
| 5 | “Enter any expected additional taxes from an election to report your child’s interest and dividends, lump-sum distributions (Form 4972), and alternative minimum tax” |
| 6 | “Add lines 4 and 5” |
| 7 | “Enter the amount of any expected tax credits. See Table 1-2” |
| 8 | “Subtract line 7 from line 6 (if zero or less, enter -0-)” |
| 9 | “Self-employment tax. Enter the amount from Worksheet 2-3, line 10.” |
| 10 | “Enter the total of any other expected taxes” |
| 11 | “Projected tax for 2026. Add lines 8 through 10.” Enter the total here and on Worksheet 1-5, line 1. |
Line 4 also depends on the size of your income. The caution under line 2 says “If your expected taxable income will be more than $768,700 if married filing jointly or qualifying widower; $640,600 if head of household or single; $384,350 if married filing separately, your itemized deductions may be reduced.” See Worksheet 2-6 for that reduction.
An example with invented numbers
Illustration, not an IRS example. Computation inputs (invented): a single filer with adjusted gross income of $85,000 and the 2026 standard deduction of $16,100 and no capital gains, no credits and no other taxes.
| Line | Entry | Amount |
|---|---|---|
| 1 | Adjusted gross income expected in 2026 (invented, single filer) | $85,000 |
| 2 | Standard deduction from Worksheet 2-4 | $16,100 |
| 3 | Line 1 minus line 2 (computed) | $68,900 (computed) |
| 4 | Tax on 68,900 from the Worksheet 1-4 single rows (computed) | $9,870 |
| 5 to 10 | Additional taxes, credits, self-employment tax, other taxes (all assumed zero) | $0 |
| 11 | Projected tax for 2026 (computed: line 8 plus lines 9 and 10) | $9,870 (computed) |
The single-filer rows of Worksheet 1-4 put taxable income over 50,400 and not over 105,700 in a 22% row with a subtraction amount of 5,288.00, so taxable income of $68,900 sits in that row. The page recomputes the tax two ways.
| Method | Arithmetic (computed) |
|---|---|
| 22% bracket, subtraction-amount form | 68,900 x 0.22 = 15,158; 15,158 minus 5,288 = 9,870 |
| Bracket-by-bracket cross-check | 12,400 x 0.10 = 1,240; 38,000 x 0.12 = 4,560; 18,500 x 0.22 = 4,070; total 9,870 |
Edition
This page reads Publication 505 (2026), Tax Withholding and Estimated Tax, “For use in 2026”, the file irs.gov served on 2026-10-29 (sha256 in the kit data). Worksheet numbers and line numbers belong to that edition, so check the number printed on the worksheet in your own copy before you follow a line reference. The rate rows and thresholds quoted here are the 2026 figures printed in that edition.
Common mistakes
- Using last year’s AGI without adjusting. The line tells you to start from last year’s return and add or subtract expected changes.
- Forgetting the self-employment tax pieces. Line 1 subtracts the deduction and line 9 adds the tax itself.
- Using the plain rate worksheet when you have capital gains or qualified dividends. Line 4 sends you to Worksheet 2-7 in that case.
- Entering refundable credits and withholding the same way. Line 7 is expected tax credits, not tax already withheld.
Related: the 2026 tax brackets, the Form 1040-ES estimated tax worksheet, the estimated tax standard deduction worksheet, and Form W-4.
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Answer againSources
- Publication 505 (2026), Tax Withholding and Estimated Tax: https://www.irs.gov/pub/irs-pdf/p505.pdf
- Form W-4 (2026), Employee’s Withholding Certificate: https://www.irs.gov/pub/irs-pdf/fw4.pdf
- 2026 Form 1040-ES, Estimated Tax for Individuals (with instructions): https://www.irs.gov/pub/irs-pdf/f1040es.pdf
Read from the IRS documents linked above on October 29, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.