Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

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To change the amount of withholding from your paycheck, which form should you complete?

1040
1040EZ
W-4
W-2

The correct answer is: W-4

To change the amount of withholding from your paycheck, you need to complete the W-4 form. The W-4 form, also known as the Employee’s Withholding Certificate, is specifically designed for employees to indicate their tax situation to their employers. This includes adjustments for the number of allowances or deductions they plan to claim, which in turn affects how much federal income tax is withheld from their paychecks. Completing a W-4 allows you to manage your tax withholding more effectively, so you can either reduce the amount taken out if you anticipate owing less at tax time, or increase it if you expect to owe more, thus helping you avoid a surprise tax bill. The other forms mentioned serve different purposes: the 1040 and 1040EZ are types of individual income tax returns used for filing taxes after the year has ended, while the W-2 is a wage and tax statement provided by your employer summarizing your earnings and the amount of tax withheld for the year. Therefore, only the W-4 is related to adjusting the withholding amounts from current paychecks.