What is federal income tax withheld? Home › Forums › Tips for Accountant › What is federal income tax withheld? This topic contains 0 replies, has 1 voice, and was last updated by Anonymous 2 years, 6 months ago. Author Posts 05/11/2016 at 12:05 pm #6824 Anonymous I dont know what the federal income tax withheld means. I thought it meant the amount they taxed my income for, but then again withheld would mean the opposite, or something. Can anyone help? Author Posts You must be logged in to reply to this topic.