wikiHow Glossary of Federal Tax Withholding Terms * Federal Income Tax - A tax on income earned by individuals and businesses at the federal level. * Withholding Tax - The amount of tax that an employer withholds from an employee's paycheck to cover federal income tax. * W-4 Form - A form that an employee fills out to indicate their tax withholding status and how much they want to have withheld from their paycheck. * Allowance - A number that an employee claims on their W-4 form to adjust their tax withholding based on factors such as marital status, dependents, and other tax deductions. * Exemption - An amount of money that an employee can deduct from their taxable income for each exemption claimed on their W-4 form. * Tax Bracket - A range of income levels that are subject to a specific tax rate. * Standard Deduction - A set amount of money that taxpayers can deduct from their taxable income to reduce their tax liability. * Estimated Tax - The amount of tax that self-employed individuals and businesses are required to pay throughout the year based on their expected income. * Form W-2 - A form that an employer provides to employees at the end of the year that summarizes their earnings, tax withholding, and other payroll information. * Form 1099 - A form that businesses use to report income paid to independent contractors, freelancers, and other non-employee workers. Note: This is a basic list, and there may be additional terms and concepts related to federal tax withholding that may be relevant depending on your specific situation. Page