The amount of federal income tax decreases as the number of allowances increases.

Name: The amount of federal income tax decreases as the number of allowances increases.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

The number of allowances claimed on a W-4 form directly affects the amount of federal income tax withheld from an employee's paycheck. More allowances mean less tax is withheld, thus decreasing the amount of federal income tax deducted from each paycheck.

The Amount of Federal Income Tax Decreases as the Number