The more allowances claimed on Form W-4:
A)The less money deducted for FIT
B)The more money deducted for FIT
C)No FIT ever deducted
D)FUTA increase
E)All of these

Question

Quizplus · Accepted Answer

The more allowances claimed on Form W-4, the less money that is withheld for federal income tax (FIT). Each allowance reduces the amount of taxable income subject to FIT, resulting in less deduction from the paycheck.

The More Allowances Claimed on Form W-4