Asked by Chynna Hughes on Jun 01, 2024
Verified
Which of the below allowances would have the most amount of taxes withheld for federal income tax purposes?
A) S-1
B) S-0
C) S-3
D) S-2
Federal Income Tax
The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.
Allowances
A revision of the definition referring to sums of money set aside or given for a specific purpose, such as deductions from taxable income to account for certain expenses.
- Understand the significance and effect of allowances in relation to federal income tax deductions.
Verified Answer
PB
Patrick BeverlyJun 06, 2024
Final Answer :
B
Explanation :
The lower the number of allowances claimed, the more taxes will be withheld from each paycheck. S-0 means the employee is claiming zero allowances, which would result in the maximum amount of taxes being withheld from their paycheck for federal income tax purposes.
Learning Objectives
- Understand the significance and effect of allowances in relation to federal income tax deductions.