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Get your taxes done using TurboTax
Withholding rate is how much the employer (or payer) takes out of your earned income and sends in to the IRS.
Tax Rate is what you end up paying after you complete your tax return.
If you get a refund on your tax return, the withholding rate may have been a bit higher compared to the tax rate calculated on your tax return.
If you end up with a payment due, the withholding rate may have been a bit lower compared to the tax rate calculated on your tax return.
No one knows their tax rate until after they do their tax return.
Withholding rate is a guess as to what your tax rate will be.
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‎February 5, 2025
11:44 AM