Withholding allowance

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.

 

reference: MortgageLoan.com

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