If you have too little federal tax withheld from your pay, you could end up owing a lot of money when you file your taxes. If you withhold too much, you will get a large refund next year, but that means you gave up the use of your money for several months during the year.
You may want to adjust your federal tax withholding with your employer. You should also evaluate your withholding if you have recently married or divorced, added a dependent, purchased a home, changed jobs or retired.
The withholding calculator at IRS.gov can help you figure the correct amount of federal withholding and provide information you can use to complete a newForm W-4, Employee’s Withholding Allowance Certificate.