Which of the following statements regarding income tax withholding is incorrect?
A) The withholding tables are designed so that employee withholding approximates the tax liability.
B) The withholding tables vary based on filing status.
C) Extra allowances can be claimed and reduce withholding.
D) Large itemized deductions require the need for additional withholding.

Question

Quizplus · Accepted Answer

Large itemized deductions may reduce taxable income but do not necessarily require additional withholding. It is up to the individual taxpayer to adjust their withholding accordingly based on their deductions and tax liability.

Which of the Following Statements Regarding Income Tax Withholding Is