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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NY, NY Member, AICPA National CPA Financial Literacy Commission -- If you overpaid last year, you're over-withholding.
Do you know that over-withholding is like making an interest free loan to the IRS?
The lawsuit alleges that Schwab knew or should have known about system-wide problems which led to the overcharging of commissions, loss of interest paid, charging of unwarranted interest, and over-withholding of equity.
Account option requirements have been erroneously calculated, resulting in an over-withholding of equity from the account, a loss of interest on such equity, and opportunity costs as a result of the withheld equity.