Lower IRS Withholdings Do Not Mean Paying Less Tax

The warning comes in a context of pressure on family budgets, particularly due to housing, car, and food expenses, with the association recognizing that for many families, additional income will be absorbed by current expenses. The article addresses the issue of IRS withholdings in Portugal, clarifying that reductions in source withholdings do not necessarily imply a decrease in the total tax to be paid. This is a mechanism for anticipating tax payments that does not change the final amount owed to the State. This distinction is particularly relevant in a period when many families face growing difficulties with the cost of living.