A personal allowance: a. is indexed for inflation every calendar quarter. b. amounted to $2,000 in 2019. c. may be claimed at the same time with each employer for whom an employee is working during the year. d. may be claimed to reduce the amount of withholdings from the employee's earnings. e. for one person is a different amount for a single versus a married taxpayer.

Question

Business

Martha Murphy

19 March, 12:30

A personal allowance: a. is indexed for inflation every calendar quarter. b. amounted to $2,000 in 2019. c. may be claimed at the same time with each employer for whom an employee is working during the year. d. may be claimed to reduce the amount of withholdings from the employee's earnings. e. for one person is a different amount for a single versus a married taxpayer.

+3

Answers (1)

Know the Answer?

Kendall Petty · Answer 1

D. May be claimed to reduce the amount of withholdings from the employee's earnings.

Explanation:

A personal allowance can also be known as a "tax-free" allowance. It refers the amount an individual is entitled to earn in a given tax year, before he / she starts paying income tax.

Based on common practice, when your Federal income tax withholding is calculated, you can claim some allowances such as the personal allowance which will reduce the amount of your income that is withheld by your employer.