On the W-4 Form,what is meant by Married,but withold at higher single rate?

Answer 1

It means that the employee is married, but wants as much tax withheld from their check as if they were single. If both husband and wife work, this is a good idea. If one is a stay-at-home spouse, than the married rate is better.

Answer 2

It's kind of a dumb option (for the government to give). Sometime the government is hoping you wish to give them additional money.

If for some reason you believe you might end up with an additional tax liability (ie. lots of investments where the interest/dividends/capital gains aren't withheld), you might want to withhold additional parts of your salary so you don't have a penalty when the government finds out you have a huge payment to them coming.

Unless you have special broker arraignments that allow you to keep investment profits tax free, don't select that option.

Answer 3

At the end of the year you get a larger refund because essentially they have withheld too much. That is assuming you file your tax return as "married".

Answer 4

sounds like to me that they are taking out more taxes on your check than normal, which can be a good thing because you should get more back when you file your taxes