What are federal allowances?

Answer:
Generally things to either ease the accounting for, or control the tax benefit from items effecting a tax return.

For example, certain auto/travel expenses are deductible. The amount spent can be difficult for many people to keep track of exactly, so there are standards set, that with limited documentation are allowed. A rate per mile. Yours may well have been different..higher or lower..but the IRS will allow that.
First answer by IamLostRU. Last edit by IamLostRU. Contributor trust: 1567 [recommend contributor recommended]. Question popularity: 12 [recommend question].