The W-4 tax form is used to ___________.

• A. file an annual federal income tax return
• B. report annual wages and the amount of taxes withheld to the IRS
• C. determine the amount of federal income tax to withhold from an employee's paycheck
• D. apply for a taxpayer identification number

Answer: (C)

Verified step by step guidance

1. Understand the purpose of the W-4 tax form: It is a document completed by employees to inform their employer of their tax situation, including exemptions, allowances, and additional withholding amounts.
2. Recognize that the W-4 form is not used to file an annual federal income tax return. That is done using forms like the 1040.
3. Clarify that the W-4 form is not used to report annual wages and taxes withheld to the IRS. This is typically done using forms like the W-2.
4. Note that the W-4 form is not used to apply for a taxpayer identification number. That is done using forms like the SS-5 for a Social Security Number or the W-7 for an Individual Taxpayer Identification Number.
5. Conclude that the correct purpose of the W-4 form is to determine the amount of federal income tax to withhold from an employee's paycheck, based on the information provided by the employee.