Consider cases where the number of withholding allowances is less than 6.
The amount of federal income tax withheld will increase if the
1. Gross pay increases and withholding allowances remains the same or
2. Gross pay remains the same and withholding allowances decreases
Option B is correct. The amount of federal income tax withheld will increase when Gross pay increases by more than $20 and withholding allowances stay the same