Is withholding a form of tax itself, or is it a collection method?

[lolcuster]

What is the name of your state (only U.S. law)? DC

Hello. My question is about withholding.

Is withholding a form of tax? Or is it a collection method for estimated tax?

Someone told me that it was a form of tax itself, but someone else told me that it was a method for how taxes are collected.

Thank you.

 

[Zigner]

What is the name of your state (only U.S. law)? DC

Hello. My question is about withholding.

Is withholding a form of tax? Or is it a collection method for estimated tax?

Someone told me that it was a form of tax itself, but someone else told me that it was a method for how taxes are collected.

Thank you.

Think about it - the answer is fairly evident.

 

[LdiJ]

What is the name of your state (only U.S. law)? DC

Hello. My question is about withholding.

Is withholding a form of tax? Or is it a collection method for estimated tax?

Someone told me that it was a form of tax itself, but someone else told me that it was a method for how taxes are collected.

Thank you.

Withholding is a deposit against your eventual tax...so yes, its basically a collection method for eventual tax.