Public conceptFinish the estimate
Federal withholding
Federal income tax paid during the year through a payer, commonly visible in box 2 of Form W-2.
In one sentence
Withholding is a payment already made, reconciled after the tax calculation.
Model
tax liability − withholding = estimated balance
Worked example
$10,000 of withholding against $9,200 of modeled tax produces an $800 potential refund before omitted items.
What to notice
Follow this mechanism in a related lesson, where the same calculator engine exposes every intermediate value.
Common misconception
Withholding does not reduce tax liability; it reduces what remains to be paid with the return.
See it in motion