The Truth About Taxes and Your Employment

S. Kay Bell

“Unquestionably, there is progress. The average American now pays out twice as much in taxes as he formerly got in wages.”

—H.L. Mencken, author

Getting Your Withholding Right

A lot of folks intentionally have too much tax withheld from their paychecks. They consider it an automatic savings account that pays off with a refund when they file their returns.

The Internal Revenue Service likes this process, too, since the agency gets an interest-free loan from these overwithholding advocates.

Withholding is a crucial component of the U.S. tax system, which operates on a pay-as-you-earn arrangement. Essentially, the IRS wants the appropriate amount of taxes on your money as soon as or shortly ...