What are witholdings?
If you are an employee, your employer probably withholds income tax from your pay as the result of you filing out Form W-4 (the form necessary to declare witholdings). In addition, tax may be withheld from certain other income, including pensions, bonuses, commissions, and gambling winnings. In each case, the amount withheld is paid to the Internal Revenue Service (IRS) in your name.
