What is a Withholding Allowance? 
A withholding allowance is used in the formula when figuring the amount of income tax to be withheld from each paycheck you receive. The range of withholding allowances you can choose are from 0 up to a maximum of 10. The more allowances you have, less money will be withheld for taxes. Your withholding allowance can be increased or decreased by completing a Form W-4 that you sign and give to your employer. You have the right to do this at any time.

How do I decrease my Withholding? 
To decrease the amount of money being withheld on your checks, you can increase the number of withholding allowances. The maximum number of withholding allowances is 10. Some payroll programs will not allow more than 9 withholding allowances. But be careful, if you underpay your tax liability you end up owing at the end of the year and be subject to a penalty and interest charges by the IRS.

Get More Tips on W-4 Withholdings and Paycheck Deductions Here

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