4. Taxes and Income

Withholding Choices — Quiz

Test your understanding of withholding choices with 5 practice questions.

Practice Questions

Question 1

Which of the following best describes the relationship between the number of allowances claimed on a W-4 and the amount of federal tax withheld from each paycheck?

Question 2

An employee earns a monthly gross income of 3,800 and claims 3 allowances on their W-4. If each allowance reduces the taxable income by $160 per month, what is their taxable income per month?

Question 3

If an employee gets married and updates their W-4 to reflect their new filing status as 'Married Filing Jointly,' which of the following is a likely outcome if they do not adjust their allowances?

Question 4

An employee wants to ensure they do not owe taxes at the end of the year. They currently claim 2 allowances on their W-4. Which of the following actions would most likely help them achieve this goal?

Question 5

An employee earns a biweekly gross income of 2,200 and claims 2 allowances on their W-4. If each allowance reduces the taxable income by $90 per pay period, what is their taxable income per biweekly pay period?