How to Fill Out a W-4 Form

Your employee should fill out Step 3 if they have qualifying children (children under age 17) or other dependents or want to claim additional credits. Only employees whose total income is $200,000 or less ($400,000 or less is married filing jointly) can claim the child tax credit and other dependent credits. In 2020, the Internal Revenue Service (IRS) made significant changes to Form W-4 to simplify the process and provide more accurate federal income tax withholding for taxpayers. The new design removed the use of allowances, which were previously tied to personal exemptions that were eliminated by the Tax Cuts and Jobs Act (TCJA) in 2017.

Resources to help your team complete W-4s

But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. We are an independent, advertising-supported comparison service.

Step-by-Step Guide to Filling Out a W-4:

• When a candidate joins a new organization, the employer provides them with the IRS W4 form.
• If you receive IHSS services, you are required to fill out a W-4 for each client.
• In 2017, the Tax Cuts and Jobs Act prompted some major revisions to the W-4 Form.
• Instead, employees provide specific information about income, dependents, and deductions to accurately determine withholding amounts.
• When you have multiple jobs or file taxes jointly as a married couple, you may need to adjust your tax withholding to ensure you don’t underpay or overpay taxes.
• You can also reduce the amount withheld in step 4 by reducing income from another job.
• Form W-4, also known as the Employee’s Withholding Certificate, is used by employers to determine how much federal income tax to withhold from your payroll.

If not, I recommend using the IRS online tax withholding estimator to determine whether you need any extra withholding. If you are exempt from tax withholding, you only need to complete Step 1(a), Step 1(b), and Step 5 — and then you can write “Exempt” on Form W-4 in the space below Step 4(c). Generally, you can only claim exempt if you don’t have any tax liability, meaning you didn’t owe any tax last year due to earning income, or you didn’t need to file a tax return at all. Before 2020, the amount of tax withheld was calculated in allowances, in which you entered 0, 1, or 2 on your W-4 form. Entering “0” for allowances meant that the most amount of money was withheld from your paycheck, and “2” ensured that the least amount was. For example, a single person could claim a “1” allowance and likely receive a modest refund at the end of the year.

• This information sets the foundation for determining your withholding rate.
• Check if your state has a separate W4 form or do they use a federal w4 form.
• For example, a single person could claim a “1” allowance and likely receive a modest refund at the end of the year.
• Form W-4 is an important document that you will fill out when you start working at a new job.
• It works to establish the amount of federal income tax that should be deducted from your salary.
• On the flip side, having too much withheld from your paycheck means overpaying your taxes and results in a tax refund check.

Subscribe to Taxfyle

Speaking of adjusting your Form W-4 withholding — we can help with that too. TaxAct’s Refund Booster tool is a W-4 calculator designed to help you fine-tune your tax withholding based on your personal goals. Assuming you’ve gathered your documents, start by entering your personal information in Step 1 of the W-4. You’ll need to provide your name, address, Social Security number, and select your tax filing status, such as Single or Married Filing Jointly. This information sets the foundation for determining your withholding rate.

How to Fill Out a W-4 Form: A Step-By-Step Guide (

The filing status that you select will dictate the amount of income tax you are responsible for paying annually, based on your family situation. If you are exempt from withholding, write “exempt” in the space below step 4(c). Also, you’ll need to submit a new W-4 every year if you plan to keep claiming exemption from withholding. If you want more taxes taken out of your paychecks, perhaps leading to a lower bill or a tax refund when you file, here’s how you might adjust your W-4. The IRS releases updated versions of certain tax forms each year to tweak language for clarity and to update references to certain figures, such as tax credits, that may be adjusted for inflation. The 2025 W-4 was released on Dec. 17 and is available on the IRS website or through your employer.

In the past, choosing 0 allowances meant your employer would withhold the maximum amount from your paycheck while choosing 1 allowance meant reducing the withholding amount. If you’re an employer running a US-based business, FreshBooks Payroll software can help you onboard new employees, automatically run payroll, and make sure you stay compliant with tax and labor laws. Whenever you run into any major life changes, you’ll want to update this form, too. Obviously, if you get a new job, you’ll fill out a new one, but if you get married, have a kid, or get a second job, you’ll ask for a new W-4, then adjust accordingly. If you want extra tax withheld, or expect to claim deductions other than the standard deduction when you do your taxes, you can note that. Similarly, Step 4, section (b) on the W-4 form allows you to claim any deductions other than the standard to reduce your withholding.

You’re not a kid on Christmas morning and Uncle Sam certainly isn’t jolly old St. Nick. When you and your spouse both have jobs, filling out your W-4 requires a little bit of communication and teamwork. So why not make your next date night a chat about your W-4s date night? Okay, you can come up with a better name, but you get the picture. Before you get cracking, there’s some stuff to get done—aka your onboarding paperwork. Yep—not the most exciting way to get started, but it’s an essential document when it comes to your taxes.

If, for example, you have three children under 17, enter $6,000 on the first blank line. If you have other qualified dependents, you can multiply the number of them by $500 and enter this amount in the second blank line of this section. Procrastinating on filing your taxes can cost you time and money. Here are some tips to make sure you don’t end up in a mess this tax season. Employees must fill out W-4 forms to comply with IRS requirements for tax withholding throughout the year. One likely cause is if you receive significant income reported on Form 1099, used for interest, dividends, or self-employment income that you still need to pay taxes on.

Line 4(c) is how to fill out a w4 for dummies a catch-all line allowing you to add any additional withholding for any other purpose. So without further ado, let’s take a look at how to properly fill out your W-4 tax form for the 2024 tax year. At no extra cost to you, some or all of the products featured below are from partners who may compensate us for your click.

The estimator on the W-4 form assists employees in calculating the correct withholding amount. The employee’s withholding certificate or commonly referred to as Form W-4 is another important document offered by the IRS. It works to establish the amount of federal income tax that should be deducted from your salary.