Internal Revenue Service United States Department of the Treasury
Module 1: Payroll Taxes and Federal Income Tax Withholding

Page 6 of 7

Back Next
Sim 1: Completing Form W-4
Simulation Info: Lawrence Red Owl; Marital status: Single; Background: In May you graduated from college and you got a job as a manager at a mall clothing store.

Let's review what happens if you are single, earn $500 per week, and claim zero, one, or two withholding allowances.

Withholding allowances 0 1 2
Amount of tax withheld $61 $49 $38

 

Can you describe the relationship between the number of allowances claimed on Form W-4 and the amount of tax withheld?

As the number of allowances increases, the amount of federal income tax withheld
A.
B.
C.
My Profile
My Form W-4
Back Next
Simulation
Close Window