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Withholding too much is literally required under the law. If you don't withhold enough, at tax time you could be liable for penalties unless you also pay quarte
by tadfisher 3y ago
Withholding too much is literally required under the law. If you don't withhold enough, at tax time you could be liable for penalties unless you also pay quarterly to make up the difference. This counts for all of your income, not just the income from a W-2 job.
Fixing the withholding system to account for the real world would go a long way toward simplifying reporting and would improve compliance.
- boolemancer 3y ago> Withholding too much is literally required under the law. If you don't withhold enough, at tax time you could be liable for penalties unless you also pay quarterly to make up the difference. You only need to withhold 90% of the taxes you owe to avoid an underpayment penalty, so you don't need to withhold too much.