Question

When would an employee want to have additional taxes withheld by their employer? (all that apply)

A) When the employee has zero dependents

B) When the employee has more than one job

C) When the employee would like a smaller return

D) When the employee has additional income for which no income tax is withheld

Answer 1

Employees may opt for additional tax withholding if they have multiple jobs or other sources of untaxed income to prevent owing tax when filing their returns.

Step-by-step explanation:

An employee might want to have additional taxes withheld from their wages for a few reasons. B) When the employee has more than one job, extra withholding may help cover the total tax liability from multiple sources of income. D) If the employee has additional income, such as income from freelance work, investments, or rental property for which no tax is withheld, they might want additional taxes withheld to avoid owing a large sum when they file their tax return.

Adjusting withholding is a personal choice. Some employees might prefer a larger paycheck throughout the year, but this can lead to a smaller refund or potential tax liability. Others opt to have more taxes withheld to ensure they pay enough tax upfront and to possibly get a tax refund when filing their tax returns.