overwithhold

verb
over·​with·​hold | \ ˌō-vər-with-ˈhōld How to pronounce overwithhold (audio) , -wit͟h-\
overwithheld\ ˌō-​vər-​with-​ˈheld How to pronounce overwithheld (audio) , -​wit͟h-​ \; overwithholding

Definition of overwithhold

: to withhold too much of (something) especially : to deduct a greater amount of (money) from an employee's pay for tax than the employee is legally required to pay At least two-thirds of us overwithhold our pay for federal tax purposes. — Brent Hunsberger If you often get a big tax refund, you're overwithholding. — Sheryl Nance-Nash