Allowances on your W-4 are used to determine how much tax to withhold from your paycheck. Quite simply, the more allowances you claim, the less tax your payroll department will withhold, and vice versa. You can use the worksheet that accompanies the W-4 to determine the right number of allowances to claim, or you can use this W-4 calculator found on the IRS website: https://www.irs.gov/Individuals/IRS-Withholding-Calculator.
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