Just like how Goldilocks had to try the porridge that was too hot and then the one that was too cold before she found one that was just right, you need to find the amount of tax withholding that’s not too much or too little for your circumstances. No one wants a bad surprise when Tax Day comes, and having the proper withholding can help you avoid these surprises.
You should especially check your withholding after a significant life change, such as a marriage, divorce, new child, a move, or major changes in the tax law.
How much should you withhold? The Tax Withholding Estimator on the IRS website can help people determine if they have too much income tax withheld and how to adjust.
Tip adapted from IRS.gov6
Footnotes and Sources
- IRS.gov, November 2, 2022
