Mike earns wages of $1,000. He increases the number of allowances claimed from 2 to 4. The amount of income tax to be withheld:

Question

Quizplus · Accepted Answer

Increasing the number of allowances claimed generally leads to a lower amount of income tax being withheld. This is because more allowances result in a higher amount of income being exempt from taxation. Therefore, Mike's income tax to be withheld would decrease after increasing the number of allowances from 2 to 4.

Mike Earns Wages of $1,000