When you start a new job, your employer will ask you to complete a W-4 form. This form asks you to choose how much money you want your employer to withhold from your paycheck for federal income taxes.
There are several factors that can impact your withholding selections, including your filing status, number of dependents, and other sources of income. To help you determine the right amount to withhold, the IRS provides a withholding calculator on their website.
It's important to note that while choosing to withhold more money can mean a larger refund at tax time, it also means you'll have less in your paycheck each pay period. On the other hand, choosing to withhold less can result in a bigger paycheck throughout the year, but may mean you owe taxes when you file your return. It's important to find the balance that works best for your financial situation.