A client is struggling to meet their monthly bills and has an $8,000 tax refund. Which form should be adjusted to avoid this in the future?

Adjusting the W-4 form is essential for clients who find themselves receiving a significant tax refund while struggling to meet their monthly expenses. The W-4 form, which is the Employee's Withholding Certificate, allows employees to inform their employer of the amount of federal income tax to withhold from their paychecks.

When employees get large tax refunds, it often indicates that too much money has been withheld from their paychecks throughout the year. While receiving a refund might seem beneficial, it essentially means that the taxpayer has lent the government money without interest for a year, money that could have been used to cover immediate expenses or savings goals.

By adjusting the W-4 to decrease withholding, the client can increase their take-home pay, which can help alleviate their monthly financial pressures. This change allows them to keep more of their earnings throughout the year instead of waiting for a refund that may not ultimately help them in managing their immediate financial needs.

The other forms, such as the W-2 (which reports annual wages and tax withheld), 1099 (which reports various types of income other than wages), and Schedule C (related to business income), do not directly manage the withholding process that affects the client's monthly budget in the same way.