from The American Heritage® Dictionary of the English Language, 4th Edition
- transitive v. To deduct (an amount in withholding tax) beyond the tax owed.
- transitive v. To subject to overwithholding.
- intransitive v. To deduct too much withholding tax.
Sorry, no etymologies found.
She tries to overwithhold all year long in order to ensure a larger refund; this year, it will be $1,600.
But he has younger family members who overwithhold on purpose.
You can get penalized when you overwithhold against your state tax liability.
It's OK to overpay your federal estimated tax (or to overwithhold).
If you overwithhold federal taxes, you'll get a big refund.
Most Americans overwithhold -- basically, giving Uncle Sam an interest-free loan -- but about a quarter end up owing money, sometimes with a 10% penalty on top.