How to Fill Out W-4: 4 Tips for Filling Out the Form

A W-4, also known as the Employee’s Withholding Certificate, is an Internal Revenue Service (IRS) tax form indicating the amount of taxes to withhold from taxpayers’ salaries. Employees fill out the form with itemized deductions and submit it to employers. Employers deduct the appropriate amount of federal income tax from each paycheck based on the employee’s selections. The amount withheld counts toward your annual tax bill. It’s common practice to fill out a new W-4 form when you start a new job or experience a financial change or life change impacting your tax filing status.

Accurately completing the W-4 form will ensure you owe less money to the IRS (Internal Revenue Service) when you file annual taxes. There are four sections of the W-4 form, including:

1. 1. Personal information: This section includes your name, filing status (marital status and whether you are the head of household), address, and social security number.
2. 2. Multiple jobs or spouse works: The next section requires information about you and your spouse’s employment. This section helps the IRS and your employer adjust your tax liability based on whether you are married filing jointly, or if you hold multiple jobs. You must fill out the multiple jobs worksheet if you have more than one job.
3. 3. Claim dependents: You can claim dependents and children in the third section of the W-4 form. Parents qualify for a child tax credit, so list them on the form.
4. 4. Other adjustments: In the final section of the form, you can add any extra withholdings, credits, or deductions beyond standard deductions, such as student loan interest.

Your employer may provide the W-4 form, or you can download the form from IRS.gov. The form includes printed information and blank areas for you to fill in. Read the document thoroughly and ensure you provide accurate information in each section. The W-4 form contains a Deductions Worksheet to help you estimate your withholdings. You can consult a tax professional for additional assistance.

Consider the following tips for filling out a W-4 form:

1. 1. Include deductions and credits. How you fill out your W-4 directly relates to the withheld amount from each paycheck. Your employer will withhold more money each pay period if you have fewer exemptions or deductions.
2. 2. Read the instructions carefully. Fill out form W-4 accurately, so you aren’t surprised by your income tax return at the end of the year. At tax time, the IRS compares what you have already paid to your tax liability (what you should have paid), which is why a correct withholding amount is essential. Based on how accurate your estimated tax withholding was (or if you claimed more or fewer exemptions), you may owe an additional amount of tax money. If you overpaid, you might get money back from the IRS through a tax refund.
3. 3. Update your W-4 form. You can submit a new W-4 to your employer at any time. Be sure to update the form when you experience a financial or life change affecting your tax filing status. For example, you should fill out a new IRS form if your number of dependents or marital status changes.
4. 4. Use the tax withholding estimator. If your tax situation is complex, use the IRS tax withholding estimator to calculate the amount of money you should withhold from your paycheck. To use this tool, you will need last year’s tax return information and a recent pay stub.

MasterClass at Work is the learning platform to help unlock the full potential of your employees and inspire a learning lifestyle in everyone. From negotiation to mindfulness to baking—these are just a few things your teams can explore.