Finance & Banking

Withholding

wɪðˈhoʊldɪŋ

noun

What does Withholding mean?

Tax taken from each paycheck automatically.

Example sentence

"Adjust your withholding on the W-4 form."

American usage tip

Too little withheld = owing taxes in April.

Related Finance & Banking words

Overdraft
Spending more than your account holds.
Brokerage
An account for buying stocks and funds.
IRA
Individual Retirement Account.
Direct deposit
Salary paid electronically into your account.
Hard inquiry
A credit check that slightly lowers your score.
Net worth
Total assets minus total debts.
Emergency fund
Savings covering 3-6 months of expenses.
Wire transfer
A fast bank-to-bank money transfer.

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