How to Fill Out a W-4 Form

Employers use the W-4 to calculate certain payroll taxes and remit the same to the IRS on behalf of employees. This is a key form to keep in mind before filing your taxes. Everything you need to know about the form!
w-4 form tax
How to Fill Out a W-4 Form
Whenever you start a new job or want to re-adjust your tax withholdings at your existing job, you will be required to submit the W-4 to your employer. You do not have to fill out a new W-4 form every year if you already have one on file with your employer.

In this article

Formally known as Employee’s Withholding Certificate, a W-4 form is an IRS form that tells employers how much tax to withhold from an employee’s paycheck. Employers use the W-4 to calculate certain payroll taxes and remit the same to the IRS on behalf of employees. This is a key form to keep in mind before filing your taxes.

Personal information

In the first step, you enter your name, address, Social Security number and tax-filing status. Make sure your name is the same as it is on your Social Security card. If the name on this form is different, you will need to contact the Social Security Administration to ensure receiving credit for your earnings. Your tax filing status will be one of the following:

  • Single/Married filing separately
  • Married/Qualifying widow(er) filing jointly
  • Head of household (for qualifying individual/sole taxpayers in a family who are paying more than half of the household expenses)

Account for Multiple Jobs

The second step applies only if you have more than one job, or if your spouse works and you are filing jointly. Here, you have three options to complete this step:

  • Use the IRS’ Tax Withholding Estimator to calculate the additional tax you need to have withheld. 
  • Use the IRS’ Multiple Jobs Worksheet (on page 3 of W-4) to calculate the amount if you and/or your spouse work either two or three jobs at the same time.
  • If you and/or your spouse work a total of two jobs only, check the box located at 2C of the form. This way, your standard deduction and tax brackets will be cut in half for each job to calculate withholding.

Claim Dependents

If your total income is under $200,000 (or $400,000 if filing jointly), you can enter the number of dependents you have and multiply that number by the credit amount, which is $2,000. If you have other qualified dependents, you can multiply their number by $500. The IRS has a tool to help you determine who to claim as a dependent.

Refine Your Withholdings

This step is optional — accounting for other adjustments you can make to refine your withholdings. This has three parts:

  1. Other income (not from jobs): You can include other income you receive not related to jobs such as interest, dividends and retirement income.
  2. Deductions: If you plan to claim itemized deductions (other than standard deductions) to lower your tax liability, fill out the worksheet on page 3.
  3. Extra withholding: In case of multiple jobs, you can designate a specific amount (like an extra $10) for additional withholding tax from your paychecks.

Sign and Send to Your Employer

After reviewing your form and verifying that the data provided is correct, provide the signed form to your employer’s human resources or payroll team.

Important Things to Remember

You can change information on your W-4 as and when there are changes in your tax profile. If your household finances change, and you become responsible for paying most of the bills, you can change your status to head of household, which entitles you to higher standard deductions and lower tax liability.

When you complete your W-4, it does not go to the IRS immediately. It goes first to your employer, who will keep the form on file for at least four years. The IRS reviews withholdings from time to time. So it is important to complete your W-4 form correctly or you could end up with a higher tax bill.

Some taxpayers might qualify for exempt status if they had no tax liability in the previous year or current year. Doing this will also mean that their employer will not withhold any of their pay for federal taxes. If you want to claim exempt status, remember to fill out a W-4 form each year by February 15. This will inform you about your zero tax liability and maintain exempt status.

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!

👍👎
Nivedita Majumdar

Nivedita Majumdar

A journalist at heart, Nivedita is a passionate storyteller who thrives on informing readers about what matters to them. When not typing away on her keyboard, she is looking to savor new life experiences (on budget)!

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

Related Posts

do i get taxed in high yield savings account

Do I Get Taxed in a High Yield Savings Account? Best Tips

Compared to conventional savings accounts, HYSAs provide appealing interest rates that enable you to grow your funds more quickly. But, Do I get taxed on high-yield savings account? Let's find out!
benefits of filing taxes online

What Are The Benefits of Filing Taxes Online? The Ultimate Guide

Filing taxes is an essential responsibility for every American citizen and resident, but how we do it has evolved significantly over the years. Gone are the days of paper forms, long queues, and complex calculations. Today, technology has revolutionized the process, making it more convenient, efficient, and accessible than ever before. 
tax extension 2023

When Are Taxes Due With Extension in 2023: File for Free Now 

As the tax year progresses, individuals and businesses may need more time to complete their tax returns accurately. Here's everything you need to know about tax extensions 2023.
how to file last minute taxes in states with july 31 deadline

How to File Last Minute Taxes in States With July 31 Deadline

Before diving into the tax-filing process, it's essential to understand the significance of the July 31, 2023 tax deadline. Filing taxes after the deadline can lead to penalties and interest charges. Understanding the consequences of late filing can motivate you to file on time or seek an extension if necessary. Let's explore!
how to avoid tax penalty

How to Avoid Tax Penalty? The Ultimate Instruction |Beem|

Failure to file taxes or pay them on time can result in various penalties and interest charges. The blog aims to resolve all your queries regarding the July 31 tax deadline in Tennesse, Arkansas, Indiana and Mississippi and avoid penalties.
new york state tax filing deadline 2023

New York Tax Deadline: File by May 15 to Avoid Penalties

In March, the Internal Revenue Service announced major tax relief for certain disaster-hit states, including New York. The agency extended the New York tax deadline in certain counties to May 15, 2023, to provide more time to affected individual taxpayers and businesses to file their 2022 tax returns.

Save big on auto insurance - compare quotes now!

Zip Code:
Zip Code: