Withholding

Tax taken from a paycheck and sent to the government in advance.

Withholding is the portion of wages an employer deducts and remits to tax authorities throughout the year toward the employee eventual bill. Too little withholding leaves a balance due; too much results in a refund, effectively an interest-free loan to the government.

Too much withholding from his paycheck meant a fat refund but an interest-free loan to the government.