Which best summarizes the purpose of a W-4 form? It helps determine the amount of taxes withheld from an individual's paycheck. It helps determine when taxes are due and if money is owed to the IRS. It helps determine whether a person has dependents who must also pay taxes. It helps determine when a person needs to pay local income taxes.

The W-4 form is essentially your financial crystal ball—it helps your employer figure out how much federal income tax to withhold from your paycheck based on your personal situation. By accurately filling it out, you can strike a balance between owing a large amount at tax time or getting a hefty refund. Filling out a W-4 might feel boring, but it’s key for budgeting your finances throughout the year! If you experience life changes—like getting married, having kids, or starting a new job—be sure to revisit your W-4. Adjusting your withholdings can help ensure you're not over or underpaying the IRS, keeping your money in your pocket instead of waiting for Uncle Sam to give it back!