Educational content only — not personalized financial, legal, or tax advice. Learn more
Reference

Reference

Plain-English definitions for the terms you'll encounter on your financial journey.

F
Form W-4🧾 Taxes

A document completed by an employee that tells the employer how much money to withhold from their paycheck for taxes.

W
Withholding Allowance🧾 Taxes

An exemption claimed by an employee on tax paperwork, such as Form W-4, that directs an employer on the amount of tax to subtract from a paycheck. The more allowances or adjustments claimed, the less income tax is withheld throughout the year.