Question

Which of the following statements most accurately describes why it's important to

correctly fill out a W-4 form?
If you underpay your taxes, you'll be responsible for additional penalties beyond
your normal tax obligation
If you pay the exact right amount in taxes, you receive a tax credit in the
following year
It is a legally binding contract between you and your employer that determines
how much they pay you
It determines how much money is withheld from your paycheck and can result in
under or overpayment of taxes if filled out incorrectly

Answer 1

Correctly filling out a W-4 form is important to determine the withholding amount from your paycheck and avoid under or overpayment of taxes.

Step-by-step explanation:

The correct statement that describes why it's important to correctly fill out a W-4 form is: It determines how much money is withheld from your paycheck and can result in under or overpayment of taxes if filled out incorrectly. When you fill out a W-4 form, you provide information to your employer about your tax filing status and the number of allowances you're claiming. This information is used to calculate how much money is withheld from each paycheck to cover your estimated taxes.

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