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What Is a Withholding Allowance?

By Motley Fool Staff – Updated Dec 13, 2024 at 10:00 AM

Key Points

  • Adjust W-4 form to ensure withholding matches your expected tax, preventing over/underpayment.
  • Use IRS Tax Withholding Estimator to refine withholding based on income, deductions.
  • Reevaluate W-4 after life changes like job switch, marriage, to avoid tax surprises.
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A businessperson reviewing an income statement.
Source: Getty Images
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Should You Make After-Tax Contributions to Your 401(k)?

Learn how after-tax 401(k) contributions work and whether they're a smart move for you.

401(k) Plans: Overview, How They Work

Learn how these employer-sponsored retirement plans work and if they’re right for you.

Everything You Need to Know About Social Security Benefits in 2025

This government program supports those who need it, using funds from specific taxes.

What Is a Financial Plan and How to Make One

For long-term success with money, planning is essential.

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