Overwithholding

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Overwithholding

Deducting and paying too much tax that may be refunded to the taxpayer or applied against the next period's obligation.

Overwithholding

A situation in which an employer withholds too much money from an employee's paycheck and gives the funds to the tax agency. This occurs when the employee does not make enough to qualify for the tax bracket used on the paycheck, or when the employee takes enough itemized deductions for which the withholding does not account to reduce his/her tax liability. Overwithholding usually results in a tax refund or in the application of the amount to next year's taxation.
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Employers using the special procedure are not required to obtain written statements from employees confirming that each employee did not make a claim for refund of over-withheld FICA taxes.
Literally millions of low-income individuals would no longer have to file tax returns simply to recover over-withheld taxes.
A person responsible for collecting and paying over-withheld employee income tax, FICA or collected excise taxes who willfully fails to do so is personally liable for penalties.
At-source relief allows DTC customers to pay the lower tax rate at the time of a dividend payment, rather than a higher or maximum rate, which would require a tax reclaim to recover the over-withheld amount.
For any Social Security tax over-withheld during January, employers should make an offsetting adjustment in workers' pay as soon as possible but not later than March 31, 2012.
Uncle Sam is going to refund an average of more than $2,000 to Americans who over-withheld during 2005.
Amounts over-withheld, if any, from Canada should be claimed as a refund from the Canada Revenue Agency no later than two years after the calendar year in which the payment was paid, and should not be claimed as a credit against your U.
Tens of billions of dollars is over-withheld by governments every year on cross-order income because investors and their advisers do not provide taxing governments with sufficient information to establish the correct rate of tax.
Amounts over-withheld should be claimed as a refund from the Canada Revenue Agency and should not be claimed as a credit against your U.
Because the tax law changes took effect mid-year, many of these households are about to find they have been over-withheld and tax refunds will be much higher than expected," explained PEI's Senior Tax Analyst Eric Hayes.
Because the tax law changes took effect mid-year, many of these households will find they have been substantially over-withheld and tax refunds will be much higher than expected.
Because the tax law changes took effect mid-year, many of these households will find they have been over-withheld and tax refunds will be much higher than expected," Hayes said.