The Federal income tax is based on a "pay-as-you-go" system. There are 2 ways to pay as you go: withholding tax or estimated tax. This article discusses withholding tax (also referred to as "tax withholding"). If you work at a job, your employer most likely withholds income tax from your paychecks. (Tax may also be withheld from other types of income - such as commissions, bonuses, and pensions.) The tax withheld is sent to the IRS on your behalf, [...]
