When the number of withholding allowances claimed on Form W-4 increases, the amount of income tax withheld decreases.

Question

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When an employee claims a higher number of withholding allowances on their Form W-4, it indicates to their employer to withhold less money for federal income taxes from their paychecks. This typically results in a decrease in the amount of income tax withheld from their pay.

When the Number of Withholding Allowances Claimed on Form W-4