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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Gemini - Generally known to be logical, Gemini are the most likely to over-withhold on purpose.
Gemini (May 22-June 21) Generally known to be logical, Gemini are the most likely to over-withhold on purpose.
Not only does the IRS over-withhold taxes from about 80 percent of taxpayers, but their antiquated computer systems end up costing taxpayers in the amount of time it takes to get their refund -- from two weeks up to two months.