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
- How Form 8379 Can Free You From Your Spouse's Money Mistakes
- Qualcomm Tops Expectations but Sees Tougher Times Ahead
- 3 Mistakes to Avoid When Rolling Over Your IRA or 401(K)
- How to Calculate Taxes Using a Paycheck Stub
- How to Calculate How Much Tax to Take Out of a Retirement Check
- How Much Should I Withhold on My IRA Distribution?