KEY TAKEAWAYS All taxpayers must allow their employers to withhold part of their paychecks to pay taxes throughout the year. Overwithholding generally provides a larger tax refund, but withholding less can increase a taxpayer's paycheck. Deciding between withholding options depends on financial goals and risk tolerance. Would you rather get a $3,000 tax refund next year or pocket $250 more in your paycheck every month? Everyone has to pay taxes, but you can decide how and when to do so through ...