How to Fill Out Your W-4 (Not W-2) When Single
Ensure accurate tax withholding from your paycheck. This guide helps single filers make the right decisions when completing their Form W-4 for the year.
When starting a new job, you will be asked to fill out Form W-4, Employee’s Withholding Certificate. This form is different from Form W-2, which your employer prepares at the end of the year to detail your total earnings and withheld taxes. You are responsible for completing the W-4 to direct your employer on how much federal income tax to withhold from each paycheck.
Understanding the Purpose of Form W-4
Form W-4 is an Internal Revenue Service (IRS) document that tells your employer how much federal income tax to withhold from your paycheck. The information you provide directly impacts your take-home pay and your year-end tax situation. An accurately completed W-4 helps ensure that the amount of tax withheld closely matches your actual tax liability.
The goal is to avoid a large tax bill or a substantial refund. A large refund means you have given the government an interest-free loan, while a large bill can create financial strain. The W-4 was redesigned in 2020 to be more straightforward, eliminating the previous system of allowances.
Information and Decisions Needed for Your W-4
Before you begin filling out the form, you need to gather personal information and make several decisions about your financial circumstances. You will need your full name, address, and Social Security number. Beyond these basics, you must consider other factors that affect your tax withholding.
If you hold more than one job, you must account for the combined income to ensure enough tax is withheld. The IRS provides two tools for this: the online Tax Withholding Estimator and the Multiple Jobs Worksheet found on the Form W-4 instructions.
You will also need to determine if you can claim any dependents, such as a qualifying child who is generally under age 17 or other relatives. Finally, you must consider other adjustments, including other income not from jobs, such as interest or dividends, and whether you will claim deductions beyond the standard deduction, like for student loan interest.
Step-by-Step Guide to Completing the W-4 Form
With your information ready, the process of filling out the form is direct, and you will only complete the sections that apply to your specific financial situation. In Step 1, enter your name, Social Security number, and address, then check the box for “Single or Married filing separately” as your filing status. If you have a simple tax situation—one job, no dependents, and you take the standard deduction—these may be the only two steps you need to complete besides signing in Step 5.
Step 2 is for individuals with multiple jobs. If you used the IRS tools for this situation, you will check the box in Step 2(c). This should only be completed on the W-4 for your highest-paying job.
In Step 3, you will enter the total dollar amount of the dependent credits you calculated. Do not enter the number of dependents, but rather the total credit value based on the instructions for that tax year.
Step 4 is where you input the figures for other adjustments. In line 4(a), enter other income, in line 4(b), enter deductions, and on line 4(c), you can specify any additional tax you wish to have withheld. After completing all applicable steps, you will sign and date the form in Step 5.
Submitting Your W-4 and When to Revisit It
Once you have completed and signed your Form W-4, you must submit it to your employer, typically to the human resources or payroll department. Many employers now use electronic systems that allow you to fill out and submit your W-4 online.
Your W-4 is not a document you fill out once and forget. You should submit a new form whenever you experience a significant life event that changes your tax situation. For a single individual, common triggers for updating a W-4 include starting a second job or ending one, as this directly impacts the calculation in Step 2.
Other events also warrant a new W-4. For example, if you have a child and become eligible to claim a dependent, you will want to update Step 3. A substantial increase in non-wage income, such as from investments or freelance work, would require an update to Step 4 to avoid underpayment penalties. It is good practice to review your W-4 annually.