Tax withholding in the United States
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 alsoForm W-2Payroll taxUnited States
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