Final answer:
Form W-4 allows an employee to claim an exemption from federal income tax withholding. By claiming exemptions on Form W-4, employees can adjust the amount of tax withheld from their paychecks.
Explanation:
The correct tax form that allows an employee to claim an exemption from federal income tax withholding is Form W-4. Form W-4 is used by employees to inform their employers about the amount of federal income tax to withhold from their paychecks based on their filing status and number of allowances.
Employees can claim exemptions on Form W-4 to reduce the amount of federal income tax withheld from their wages. The more exemptions claimed, the less tax will be withheld from their paycheck, potentially leading to a smaller tax refund or a balance due when filing taxes.
Learn more about Income Tax Forms here:
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