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Finance

Tax withholding

The portion of an employee's paycheck an employer sends directly to the IRS to prepay income tax. The amount is set by the W-4 form and reconciled when you file your return.

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Related finance terms

  • 401(k) match
  • APR
  • APY
  • Adjusted gross income
  • Amortization
  • Capital gains tax
  • Compound interest
  • Debt avalanche
  • Debt snowball
  • Depreciation

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