Withholding Allowance
An allowance an individual claims on a W-4 Form. It is mainly used to assist an employer in calculating the amount of income tax to withhold from an employee's paycheck. Investopedia Says:
The more allowances you wish to claim, the less income tax will be withheld from your paycheck. You can claim one allowance for yourself, one for your spouse, and one for each of your dependents. Related Terms:
Garnishment
W-2 Form
W-4 Form
Withholding
Withholding Tax |