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)Large itemized deductions require the need for additional withholding.
C)The withholding tables vary based on filing status.
D)Extra allowances can be claimed and reduce withholding.Itemized deductions reduce the withholding required by the taxpayer.

Question

Quizplus · Accepted Answer

Large itemized deductions can reduce the taxpayer's overall tax liability, but they do not require additional withholding. In fact, they may result in a reduction of required withholding because the taxpayer's taxable income is lower.

Which of the Following Statements Regarding Income Tax Withholding Is