How to Change Filing Status With Your Employer

Your tax filing status determines how much federal income tax is withheld from your paycheck. If you experience a major life change—such as marriage, divorce, or becoming the head of a household—you may need to update this information with your employer to ensure accurate withholding. Failing to do so could result in underpayment or overpayment of taxes.

Updating your filing status requires submitting a new Form W-4 and verifying that changes are reflected on your pay stubs. Understanding this process can help prevent surprises when filing your annual tax return.

Filing Status Options

The IRS recognizes several filing statuses, each affecting how income is taxed and how withholding is calculated. Choosing the right status ensures the correct amount is deducted from your paycheck.

Single

This status applies to individuals who are unmarried, legally separated, or divorced as of the last day of the tax year. Single filers are subject to tax brackets designed for individuals. In 2024, the standard deduction for a single filer is $14,600.

If you have no dependents, this status is generally the most appropriate. However, if you support a dependent and meet certain conditions, you might qualify for head of household status, which offers greater tax benefits.

Married Filing Jointly

Married couples can file a joint return, often resulting in lower overall tax liability. This status combines both spouses’ incomes, allowing access to higher income thresholds for tax brackets and a larger standard deduction. In 2024, the standard deduction for married couples filing jointly is $29,200.

Filing jointly also makes taxpayers eligible for credits such as the Earned Income Tax Credit (EITC) and the Child Tax Credit, which may not be as beneficial when filing separately. However, both spouses are jointly responsible for any tax owed. If one spouse has unpaid taxes, both may be liable, which is an important consideration when deciding whether to file jointly or separately.

Married Filing Separately

Some married couples choose to file separately, meaning each spouse reports their own income, deductions, and credits. This can be beneficial if one spouse has significant medical expenses or itemized deductions based on a percentage of income. In 2024, the standard deduction for those filing separately is $14,600.

While this option may reduce overall tax benefits, it can be useful if one spouse has financial concerns, such as defaulted federal loans or back taxes. Filing separately can prevent one spouse’s financial obligations from affecting the other’s tax return. It’s important to compare potential tax outcomes before making this selection.

Head of Household

This status is available to unmarried individuals who provide significant financial support for a qualifying dependent, such as a child or elderly parent. To qualify, you must have paid more than half the cost of maintaining a home for the dependent.

One advantage of this status is a higher standard deduction—$21,900 in 2024—compared to filing as single. Additionally, tax brackets for this status allow more income to be taxed at lower rates, reducing overall tax liability. Many single parents or individuals caring for relatives find this option offers better tax advantages. However, meeting the criteria requires documentation, including proof of residency and financial support for the dependent.

Qualifying Surviving Spouse

Widows and widowers with dependent children may be eligible to file under this status for up to two years following a spouse’s death. This option allows the surviving spouse to use the same tax brackets and standard deduction as married filing jointly. For 2024, this means a standard deduction of $29,200.

To qualify, the filer must not have remarried and must provide more than half the financial support for a dependent child. This status helps ease the financial transition after losing a spouse. After two years, the filer must switch to head of household or single status, depending on their circumstances.

Filling Out the Required Form

To update your filing status with your employer, complete a new Form W-4, Employee’s Withholding Certificate. This document determines the amount of federal income tax withheld from your paycheck. The IRS updated the W-4 in recent years, eliminating withholding allowances and making it more dependent on income adjustments and deductions.

The first section of the W-4 requires personal information, including your name, Social Security number, and filing status. Selecting the correct status is important because it influences tax withholding. If you qualify for multiple statuses, such as head of household or married filing separately, it may be beneficial to calculate estimated tax liabilities under each to determine the best option. The IRS provides an online withholding estimator to assist with these calculations.

Beyond filing status, the form includes sections for additional income, deductions, and credits. If you have multiple jobs or a working spouse, completing Step 2 can help align withholding with total household income. Step 3 allows for claiming dependents, which can lower taxable income and increase take-home pay. Step 4 provides space to enter other adjustments, such as extra withholding for those who expect to owe additional taxes due to investment income or self-employment earnings.

Providing Updates to Your Employer

Once you complete a new Form W-4, submit it to your employer so they can adjust your withholding. Most companies process these updates through their payroll or human resources department, with many offering electronic submission. If your workplace still relies on paper forms, delivering a physical copy ensures the change is recorded. Employers typically implement updates by the next payroll cycle.

Timing matters when updating your filing status. If a change is submitted late in the year, there may be limited pay periods left to adjust withholding, which could lead to unexpected tax liabilities when filing your return. If you anticipate owing taxes due to a status change, requesting additional withholding on the W-4 can help spread the tax burden across multiple paychecks. Conversely, if too much tax is being withheld, updating the form earlier allows for more take-home pay rather than waiting for a refund.

Employers follow IRS guidelines when adjusting withholding but are not responsible for verifying the accuracy of the information provided. If a mistake is made, such as selecting an incorrect filing status or failing to account for additional income, it is the employee’s responsibility to submit a corrected form. Keeping a copy of the W-4 for personal records can help track changes and ensure consistency with tax filings.

Checking Withholding on Your Pay Stubs

Regularly reviewing your pay stubs ensures that tax withholding aligns with expected liabilities, preventing discrepancies that could lead to underpayment penalties or an unexpected balance due at tax time. Employers calculate withholding based on IRS tax tables, but factors such as bonuses, overtime, or pre-tax deductions can affect the final amount. A sudden shift in net pay or inconsistencies in withheld amounts may signal an issue that requires attention.

Comparing year-to-date withholdings against projected tax obligations can help identify shortfalls or overpayments. The IRS provides a Tax Withholding Estimator, which allows taxpayers to input income details and deductions to gauge whether current withholdings are sufficient. If the tool indicates a shortfall, submitting a revised W-4 requesting additional withholding can help avoid a large tax bill. Conversely, if too much is being withheld, adjusting downwards increases take-home pay without waiting for a refund.