In the United States income tax system, employers are required to withhold a portion of each employee's income and pay it directly to the U.S. Internal Revenue Service. This withholding acts as a prepayment of tax they will owe at the end of the year, as well as a direct payment of certain other taxes.

The amount of a person's federal income tax withholding depends on several factors such as:

• the taxpayer's marital status.
• the number of children or dependents the taxpayer has.
• if the taxpayer wants to claim child tax credits.
• if the taxpayer holds two or more jobs.
• if the taxpayer plans to itemize.
• any tax exemptions from withholding that the taxpayer wants to claim.
• any additional amount the taxpayer wants to withhold.

A taxpayer will get a tax refund if his or her withholding for the year was greater than the income tax he actually owed.

See also

• Form W-2
• Payroll tax
• United States