How to Fill Out Your W-4 Form and When to Adjust It
Most people only fill out a W-4 when they start a new job, but there are times when it may be worth revisiting.
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What is a W-4 form?
A W-4 form is an IRS document you fill out and submit to your employer. It asks about your tax filing status, other jobs you or your spouse has, and credits and deductions you expect to take. Employers then use this information to calculate how much tax to withhold from your paycheck throughout the year. That withholding can affect whether you get a refund or owe money when you file your tax return.
How to fill out a W-4
Adding your personal details and signing the form is straightforward — but what about all the steps in between? Our guide makes the hard-to-read parts easier to understand.
Step 1: Enter your personal information
Fill in your name, address, Social Security number and tax filing status. Your tax filing status helps determine whether you might qualify for certain tax credits and deductions.
Step 2: Account for all jobs or your spouse’s income
If you have more than one job, or you file jointly and your spouse works, you have a few options for completing this step. You can choose from the following options:
Option 2(a): Enter income amounts from all jobs into the IRS' withholding estimator to determine your withholding. Per the IRS, this option is generally the most accurate and can be especially helpful if you or your spouse has self-employment income.
Option 2(b): Complete the Multiple Jobs Worksheet on page three of only the highest-paying job's W-4.
Option 2(c): Check this box on both W-4s if you (or you and your spouse) have a total of two jobs and make roughly the same amount at both.
Important note → If you filled out Step 2, you'll only fill out Steps 3 through 4(b) on the W-4 of the highest-paying job. Leave these steps blank on the other W-4(s).
Not following these instructions can result in inaccurate withholding. For instance, if you claim the child tax credit on both W-4s, you may not have enough tax withheld to cover what you owe.
Step 3: Claim dependents, including children
If your total income is $200,000 or less — or $400,000 if filing jointly — enter how many kids and dependents you have and multiply them by the respective credit amounts. (See the rules about the child tax credit and when you can claim a tax dependent.)
You can also choose not to claim dependents — even if you have them — if you need more taxes taken out of your paycheck to reduce your tax bill.
Step 4: Refine your withholdings
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 in this section.
Line 4(a): Note any income you expect to receive that won't have taxes withheld, such as retirement or interest income.
Line 4(b): Fill this out if you plan to itemize your deductions. You can use the Deductions Worksheet on page four for guidance.
Line 4(c): Enter any extra tax you want withheld from each paycheck.
Step 5: Sign and date your W-4
Once completed, give the signed form to your employer's human resources or payroll team. You may also be able to fill it out online through your employer's payroll system.
on Anthem Tax Services' website
on Priority Tax Relief's website
When should you update your W-4?
You don’t have to fill out a new W-4 form every year if you already have one on file with your employer, but it's a good idea to check on your tax withholding at least annually and as your life changes. Life events like divorce, marriage, new dependents or side gigs can change how much tax you might owe
How to adjust your W-4
If you usually get a big tax bill when you file your tax return and don’t want another, you can tweak your withholding to help you owe less (or nothing) next time you file.
To have more taxes taken out of your paychecks, you might:
Reduce the number of dependents.
Add an extra amount to withhold on line 4(c).
On the other hand, if you get a big refund at tax time, you may be giving the government a free loan and living on less of your paycheck throughout the year.
To have less taxes taken out of your paychecks, you might:
Increase the number of dependents.
Reduce the number on line 4(a) or 4(c).
Increase the number on line 4(b).
How often can you adjust your W-4?
You can give your employer a new W-4 at any time — tinkering is OK. That means you can fill out a new form, submit it and then review your next paycheck to see how much money was withheld.
You can then start estimating how much you'll have taken out of your paychecks for the full year. If it doesn't seem like it'll be enough to cover your whole tax bill, or if it seems like it'll end up being way too much, you can submit another W-4 and adjust.
on Anthem Tax Services' website
on Priority Tax Relief's website