Which tax form must an employee complete to indicate how much tax should be withheld from their paycheck?

To determine how much tax should be withheld from an employee's paycheck, the correct form to complete is the W-4. This form allows employees to provide their employer with information about their tax situation, including filing status and the number of dependents they can claim. By filling out the W-4 accurately, an employee can influence the amount of federal income tax withheld from their wages, which is essential for ensuring that they pay the correct amount of tax throughout the year and avoid significant tax liabilities at filing time.

The W-2 form, on the other hand, is used by employers to report an employee’s annual wages and the amount of taxes withheld. This is not a form that employees fill out but rather one that employees receive from their employer after the year ends.

The 1099 form is utilized for reporting income from sources that are not wages, salaries, or tips, typically used for independent contractors and freelancers, rather than employees.

The 1040 form is the individual income tax return that taxpayers file annually to report their income and calculate their tax liability; this is not related to withholding decisions during employment.

Understanding the function of the W-4 is crucial for employees to manage their withholding accurately and avoid owing taxes at the end