What’s withheld

To let your employer know how much to withhold for you, you fill out IRS Form W-4, which lets you indicate how many exemptions you’re claiming. The more exemptions you claim, including those for dependents such as children, the less that’s withheld.

Ideally, withholding means that you’ve paid all or most of what you owe for the year by December 31. The balance is due when you file your tax return, a document you use to report where your money came from and figure out the tax you owe. The return is usually due on April 15 of the following year. If April 15 falls on a Saturday or Sunday, you have until Monday — the 16th or 17th.

FICA taxes

Income taxes aren’t all that’s withheld. Your employer also keeps out a combined 7.65% of your gross pay for Social Security and Medicare — though there is an annual cap on what you put into Social Security. Because Social Security withholding is required by the Federal Insurance Contribution Act (FICA), you may see that acronym on your paycheck stub rather than a reference to Social Security next to the amount that was withheld.