What is Withholding allowance?
Withholding allowance meaning in finance terminology / glossary / dictionary is:
Withholding allowance is a value that a taxpayer claims on the IRS W-4 Form. The allowance value, in part, determines how much money is withheld from the taxpayer’s earnings. A higher allowance means a lesser withholding rate. Typically, a taxpayer can claim one allowance for herself, one for her spouse, and one for each dependent.