What is federal withholding tax?

Answer by  turkishtowel (455)

Federal withholding tax is a sum of money set aside by a US taxpayer's employer out of every paycheck. The amount depends on the exemptions claimed by the taxpayer.

Answer by  Att4372 (1704)

The IRS collects income tax from paychecks. The amount depends on income and filing status (single, head of household, married) and number of dependents. You fill out a W-4 with your status info and file it with your employer. A lookup table determines withholding, which can range from zero to 35%. You get credit when you file your tax return.

Answer by  Kurt (4579)

Federal Withholding tax is the income tax withheld from employee's paychecks by their employer for income tax purposes ( different from social security and medicare deductions ). The employee should have filled out a W4 form when hired to decide on how many deductions to be claimed so the proper amount of taxes are withheld.