The W-4 form tells your employer how much federal income tax to withhold from your paycheck. Getting it right means you do not overpay (giving the IRS an interest-free loan) or underpay (owing a large bill at tax time).
Step 1 is required for everyone: enter your name, address, Social Security number, and filing status (Single, Married filing jointly, or Head of household).
Step 2 is for multiple jobs or two-earner households. If you and your spouse both work, or if you have more than one job, you need to account for this to avoid underwithholding. The easiest method is to use the IRS Tax Withholding Estimator at irs.gov.
Step 3 is for claiming dependents. Multiply the number of qualifying children under 17 by $2,000 and other dependents by $500. Enter the total. This reduces your withholding to account for the tax credits you will receive.
Step 4 has three optional parts. Step 4a is for other income not from jobs (interest, dividends, retirement income). Step 4b is for deductions beyond the standard deduction (if you plan to itemize). Step 4c is for extra withholding per pay period if you want more taken out.
Common scenarios: Single with one job and no dependents — just complete Step 1, sign, and submit. The default withholding will be close to correct. Married with two incomes — complete Step 2 using the multiple jobs worksheet or IRS estimator. Single with a child — complete Steps 1 and 3, entering $2,000 in Step 3. Freelancer with a W-2 job — enter estimated 1099 income in Step 4a to have extra tax withheld.
You can submit a new W-4 to your employer at any time. If you received a large refund, consider reducing withholding. If you owed money, increase it. The goal is to break even or receive a small refund.
Use our US take-home pay calculator to estimate what your paycheck should look like and adjust your W-4 accordingly.