The funds withheld are collected by the employer and forwarded to the IRS in the case of Federal withholding, but state and local government may have their own withholding programs to collect their income taxes. The total amount withheld is reported on the annual W-2 form, which is filed with your income tax return allowing you to claim credit for the funds withheld, and in the case of overpayment, request a tax refund.
Related Fool Articles
- [link link title]
Recent Mentions on Fool.com
- Your 2013 Tax Bill Probably Went Up. Here's Why.
- Tax Bill Rescues for the Self-Employed
- 3 Things You Need To Do Before Filing Your Next Tax Return
- Oil and Gas Companies Are Targeting the Asian LNG Market
- The 1 Tax Mistake You Must Not Make
- Can't File Your 2013 Taxes on Time? Here's How to Get an IRS Extension