The W-4 Form Changed in Major Ways Here’s What’s Different

how to fill out a w4 for dummies

After you complete Step 3, your employer will know exactly how much to decrease withholding to allow for your children. Different than when you filled out W-4 forms in the past, you’ll have to fill out your W-4 with your combined income in mind, including self-employment. Otherwise, you may set up your withholding at too low a rate.

If you have more than one job or your spouse works, you’ll need to fill out Step 2. Page 3 of the W-4 form contains a worksheet for use in determining the base amount to use for withholding. Note that if the lowest-paying job has annual wages of $120,000 or more (yeah right?), you’ll either need to use the estimator OR use tax tables that go higher than the ones provided with the W-4. What if you’re married, filing jointly and completing your W-4 form?

Who Has to Fill Out a W-4 Form?

Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street. The agency also releases the W-4 form in several languages, including Chinese, Korean, Russian, Spanish and Vietnamese. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page.

  • In order to file exempt on your W4, you’ll need to meet certain requirements.
  • Filling out a W-4 form is essentially a decision making moment.
  • Just answer simple questions, and we’ll guide you through filing your taxes with confidence.
  • It’s important to note that only Step 1 and Step 5 are mandatory; the rest are optional.
  • Add the number of dependents you can claim on your tax return.
  • These offers do not represent all available deposit, investment, loan or credit products.

Some employees might choose to not withhold anything and pay their taxes in full each paycheck. Other employees might choose to use certain withholdings to make their paychecks a little bigger. If not, you probably don’t need to change what you’re doing.

Why do I now have to submit both the W-4 and the IT-2104 forms?

If you have two jobs and your spouse does not work, you will also complete line 1. After completing this step, single filers with a simple tax situation, as described above, only need to sign and date the form, and they are done. The current W-4, form released in December 2020, was the first major revamp of the form since the TCJA was signed into law in December 2017. The way that you fill out Form W-4, Employee’s Withholding Certificate, determines how much tax your employer will withhold from your paycheck. Your employer sends the money it withholds from your paycheck to the IRS, along with your name and Social Security number.

how to fill out a w4 for dummies

How much federal and state tax an employer withholds largely depends on earnings and how the Form W-4 is filled out. The purpose of the IT-2104 is to instruct the employer (that’s you!) on how much New York State (and New York City and Yonkers) taxes they should withhold from their employee’s pay. The more allowances claimed, the lower the amount of tax will be withheld.

Download the 2023 W-4 form

Though especially important for anyone with a 2018 tax bill, it’s also important for anyone whose refund is larger or smaller than expected. By changing withholding now, taxpayers can get the refund they want next year. For those who owe, boosting tax withholding in 2019 is the best way to head off a tax bill next year. In addition, taxpayers should always check their withholding when a major life event occurs or when their income changes. This section is for if you work multiple jobs at the same time or are married filing jointly and both you and your spouse are employed.

When you change jobs, or your personal or financial situation changes, complete a new W-4 form. If you want your federal income tax withholding to be more accurate, you should fill out a new Form W-4. This will likely result in a change in your federal income tax withholding, which impacts the amount of your usual tax refund or the amount you usually owe. Ask your payroll or human resources department how to submit a new Form W-4. The first step the IRS implemented was to change the withholding tables. Employers use these tables along with the information on your Form W-4 to calculate federal income tax withholding.

Nonwage Withholding Requirements

I have my regular clients to attend to and it was overwhelming. If you’re already paying someone to do your taxes, they should be able to help you with your W4, and they’re going to know so much more about you than I will. The single most popular blog post I ever wrote was about how to fill out your W4 form. It’s time to take a new look at how to fill out that W4 form. Regardless of when you started your job (either January or December), you’ll use the $33,800 number for your calculation.

Here you can account for other income you receive, deductions you might qualify for and any extra withholding amounts you’d like your employer to take. If you have too little tax withheld, you could owe a surprisingly large sum to the IRS in April, plus interest and penalties for underpaying your taxes during the year. Every employee is asked to fill out a W-4, usually on the first day of the job. Failure to do so could result in you paying too much or too little taxes. This section allows you to have any additional tax you want withheld from your pay each pay period—including any amounts from the Multiple Jobs Worksheet, as described above, if this applies to you. The standard deduction is a flat reduction in adjusted gross income that many taxpayers qualify for.

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