Updated October 29, 2026. Quick answer: Worksheet 1-6 in Publication 505 (2026) adds up the credits you expect to claim, other than the child tax credit and the credit for other dependents, so you can include them in Step 3 of Form W-4 or Form W-4P. The worksheet’s total is on line 10, although the publication’s text refers to line 11.
For what changed on the 2026 form, see Form W-4 2026 changes.
What this worksheet is for
“Use this worksheet to figure any extra amount to enter in Step 3 of Form W-4 or Form W-4P.” “Caution: The child tax credit and the credit for other dependents are already figured in Step 3 of Form W-4 or Form W-4P.” Form W-4 (2026) Step 3 sets those two amounts: “(a) Multiply the number of qualifying children under age 17 by $2,200” and “(b) Multiply the number of other dependents by $500”.
The ten lines
| Line | Credit |
|---|---|
| 1 | “Credit for the elderly or the disabled” |
| 2 | “Credit for child and dependent care expenses” |
| 3 | “Education credits” |
| 4 | “Adoption credit (including the refundable portion)” |
| 5 | “Foreign tax credit” |
| 6 | “Retirement savings contributions credit” |
| 7 | “Earned income credit” |
| 8 | “Premium tax credit” |
| 9 | “Other credits (see Table 1-2)” |
| 10 | “Add lines 1 through 9. This is your total estimated tax credits.” Include this amount in the total entered on Form W-4, Step 3. |
Table 1-2 in the publication names the guide for each credit, for example Pub. 970 for education credits, Pub. 503 for child and dependent care, and Pub. 974 for the premium tax credit.
A numbering mismatch to know about
In the chapter text the publication says to “add the amount from line 11 of that worksheet to the amount you are entering for other dependents in Step 3 of Form W-4”. The worksheet as printed ends at line 10, the total of lines 1 through 9. This page treats line 10 as the total the text means. If your copy of the worksheet has a line 11, use the total line.
W-4P and pensions
The same Step 3 idea applies to pension withholding. Form W-4P (2026) Step 3 lets you include other credits for the payer to take into account, and the publication directs readers who have both a job and a pension to “complete Steps 3 through 4b on the Form W-4 for the job”.
An example with invented numbers
Illustration, not an IRS example. A taxpayer with two qualifying children under 17 expects a $600 child and dependent care credit, a $1,000 education credit and a $200 saver’s credit.
| Line | Entry | Amount |
|---|---|---|
| 1 | Credit for the elderly or the disabled | $0 |
| 2 | Credit for child and dependent care expenses (invented) | $600 |
| 3 | Education credits (invented) | $1,000 |
| 6 | Retirement savings contributions credit (invented) | $200 |
| 10 | Total of lines 1 through 9 (computed) | $1,800 (computed) |
| Step 3(a) | Two qualifying children under 17 (computed: 2 x 2,200) | $4,400 (computed) |
| Step 3 | Step 3(a) plus the line 10 total (computed) | $6,200 (computed) |
Line 10 totals $1,800. Added to the $4,400 for two children, the amount for Step 3 is $6,200. Including the credits raises each paycheck and lowers any refund at filing time.
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.
Common mistakes
- Counting the child tax credit twice. Step 3 already carries it and the credit for other dependents.
- Entering credits you are not sure of. The worksheet is for credits you expect, and an overstated total under-withholds.
- Looking for a line 11. The printed worksheet totals on line 10.
- Forgetting the refundable pieces. The adoption credit line includes the refundable portion.
Related: Form W-4, Form W-4P Step 3, the 2026 child tax credit, and the Projected Tax for 2026 worksheet.
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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
- Form W-4P (2026), Withholding Certificate for Periodic Pension or Annuity Payments: https://www.irs.gov/pub/irs-pdf/fw4p.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.