To understand how allowances worked, it helps first to understand how tax withholding works. Whenever you get paid, your employer removes, or withholds, a certain amount of money from your paycheck.

On the Employee's Withholding Allowance Certificate, the two key numbers you fill out are the number of withholding allowances and any additional tax you elect to have withheld from each of your ...

What Are Withholding Allowances? To determine how much to withhold from your paycheck, your employer uses the amount of your paycheck and the information you provide on your W-4.

Form W-4 is the Employee's Withholding Allowance Certificate required for employees by the Internal Revenue Service (IRS). An employee normally completes this form and submits it to an employer ...

Last year, after pushback from taxpayers and tax professionals, the Internal Revenue Service (IRS) promised to revisit form W-4, Employee’s Withholding Allowance Certificate. Today, the IRS ...

When this happens you may need to give your employer a new Form W-4 to change your withholding status or number of allowances. We have a great feature on the IRS website.