Am I having enough tax withheld from my paycheck?

It is important that you properly estimate your tax withholding. If an insufficient amount of taxes is withheld, you may end up owing a substantial sum, including penalties and interest, when you file your tax return. Choosing the correct withholding amount for your salary or wages is a matter of completing Form W-4 worksheets, providing an updated Form W-4 when your circumstances change, and perhaps becoming familiar with IRS Publication 919, which deals with withholding.

It is important that you properly estimate your tax withholding. If an insufficient amount of taxes is withheld, you may end up owing a substantial sum, including penalties and interest, when you file your tax return. Choosing the correct withholding amount for your salary or wages is a matter of completing Form W-4 worksheets, providing an updated Form W-4 when your circumstances change, and perhaps becoming familiar with IRS Publication 919, which deals with withholding.

.   When you are married and both spouses work

.   When you are working more than one job

.   When you have nonwage income, such as interest, dividends, alimony,
     unemployment compensation, or self-employment income

.   When you will owe other taxes on your return, such as self-employment tax or
     household employment tax

.   When your withholding is based on obsolete W-4 information for a substantial part
     of the year (e.g., you've gotten married, gotten divorced, gained a dependent,
     experienced income fluctuations)

To ensure that you have the correct amount of tax withheld, obtain a copy of IRS Publication 919. It should help you compare the total tax to be withheld for the year to the tax you anticipate owing on your return. It can also help you determine any additional amount you may need to withhold from each paycheck to avoid owing taxes when you file your return. Alternatively, it may help you identify if you are having too much tax withheld.