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less tax exemptions claimed - less federal withheld - is this correct.

If you claim less tax exemptions, does this mean that you are withheld less federal taxes and receive more of a net amount?


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On the contrary, the more exemptions a taxpayer can claim, the less tax withholding is necessary,
Federal income tax is deducted from an employee's paycheck. The exemptions affect how much tax is withheld from an employee's paycheck. Generally, increasing the number of exemptions reduces the taxable income, therefore less tax is deducted. For higher income taxpayers, exemptions are reduced or eliminated, the amount of tax they need to pay will not be significantly affected by exemptions.

You can check how exemptions modify tax using the IRS Withholding Calculator:
http://www.irs.gov/individuals/page/0,,id=14806,00...
Jul 5th, 2011 at 2:13 PM
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