Which of the Items Is Not Correct Regarding Withholding

question 65

Multiple Choice

Which of the items is not correct regarding withholding?

• A) Married employees can choose to have income tax withholding on wages withheld at the higher single rates.
• B) Employees can claim exempt status and avoid withholding.
• C) Employees that also have self-employment income can have additional amounts of federal tax withheld to avoid estimated tax payments.
• D) Employees cannot claim an allowance for a child unless they are entitled to claim the child as a dependent.

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Definitions:

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Novation

The act of replacing an old contract with a new one, substituting a new party into an existing agreement.

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with a clause for voiding the agreement upon repayment.

Discharged

In legal terms, released or freed from an obligation, duty, or liability.