What is a W-4 tax form used for?

The W-4 tax form is used as an "Employees Withholding Allowance Certificate," which is essential for individuals working for an employer in the United States. The main purpose of this form is to inform the employer how much federal income tax to withhold from the employee's paycheck. The information provided on the W-4 allows employers to calculate the appropriate withholding based on the employee's filing status, number of allowances claimed, and any additional withholding amounts the employee may request.

The W-4 is crucial for ensuring that employees do not have excessive or insufficient taxes withheld throughout the year, which can lead to owing money or receiving a large refund when filing annual tax returns. By properly completing the W-4, employees can better manage their tax obligations and financial situations.