How to Fill Out Form W-4 for a New Job

Form W-4, the Employee’s Withholding Certificate, is an IRS document that new employees complete. This form tells your employer how much federal income tax to hold back from each paycheck. Correctly filling out your W-4 ensures that the amount of tax withheld closely matches your annual tax liability, helping you avoid a large tax bill or a significant refund when you file your tax return.

A Step-by-Step Guide to Filling Out Form W-4

Step 1: Enter Personal Information

This step requires your personal information. You will need to enter your full name, Social Security number, and mailing address. You must also select a tax filing status: Single, Married filing separately, Married filing jointly, Qualifying surviving spouse, or Head of household. “Head of household” is for unmarried individuals who pay more than half the cost of maintaining a home for a qualifying person. Ensure your name matches the one on your Social Security card.

Step 2: Multiple Jobs or Spouse Works

This step is for those who hold more than one job or are married filing jointly with a working spouse. If this applies, gather recent pay stubs to account for total household income. You have three options to ensure correct withholding. The most accurate method is using the IRS’s online Tax Withholding Estimator and entering the results on your W-4.

Another option is using the “Multiple Jobs Worksheet” from the form’s instructions and entering the result in Step 4(c). The third option is to check the box in Step 2(c), which is suitable if you and your spouse each have one job with similar pay. If you have multiple jobs, complete Steps 3 through 4b on the W-4 for only your highest-paying job.

Step 3: Claim Dependents

In this section, you will translate your number of dependents into a dollar amount for tax credits. For each qualifying child under age 17, you will claim a credit of $2,000. For any other dependents, such as a qualifying relative or a child over 17, you will claim a credit of $500 each. Multiply the number of children by $2,000 and the number of other dependents by $500, then enter the total sum on the line in Step 3.

Step 4: Other Adjustments

This step allows for fine-tuning your withholding. Line 4(a) is where you report other estimated income for the year that is not from a job, such as interest or dividends. Line 4(b) is for claiming deductions other than the standard deduction; you would use the “Deductions Worksheet” on page three of the form to calculate the amount to enter here. Line 4(c) is for any extra tax you wish to have withheld from each paycheck, which can be an amount from the Multiple Jobs Worksheet or a voluntary additional amount.

Step 5: Sign and Date

The final step is to sign and date the form, as your signature validates the information you have provided. Once signed, the form is ready to be submitted to your employer. An unsigned form is not considered valid, and your employer would be required to withhold taxes at the highest rate for a single individual until a properly completed form is provided.

Submitting Your Form and Post-Filing Actions

Once you have completed and signed your Form W-4, submit it to your employer’s human resources or payroll department. Many companies now use electronic systems that allow you to fill out and submit your W-4 online as part of your new hire onboarding process. After your employer processes your W-4, they will calculate the federal income tax withholding for each of your paychecks.

It is a good practice to review your first pay stub after starting the job or submitting an updated W-4 to ensure the tax withheld aligns with your expectations. You should update your W-4 whenever you experience a major life event that changes your tax situation, such as getting married, having a child, or a significant change in income. This ensures your withholding remains accurate throughout the year.