Tax Withholding

The portion of your pay that your employer sends directly to the IRS. It's a pre-payment toward your annual tax bill.

Full explanation

Tax withholding is money deducted from your paycheck (or other payments like pensions and gambling winnings) and sent to the government on your behalf. Your employer withholds based on your W-4 form selections, filing status, and income level. At year end, you reconcile: total withholding vs. actual tax liability. If more was withheld than owed, you get a refund. If less, you owe the difference. For 2026, the IRS Withholding Estimator (irs.gov/W4App) helps you fine-tune. Backup withholding of 24% can also apply to 1099 income if you fail to provide a correct TIN. Social Security and Medicare withholding (FICA) is separate and not adjustable via W-4.

Source: IRS Publication 505 — Tax Withholding and Estimated Tax

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“How does tax withholdingaffect my taxes?”

Tax education only. Source: IRS Publication 505 — Tax Withholding and Estimated Tax.