W-4 Form: What It Is, How to Fill It Out in 2024
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What is a W-4?
A W-4 form, or "Employee's Withholding Certificate," is an IRS tax document that employees fill out and submit to their employers. Employers use the information on a W-4 to calculate how much tax to withhold from an employee's paycheck throughout the year.
In the past, employees could claim allowances on their W-4 to lower the amount of federal income tax withheld from their wages. The more withholding allowances an employee claimed, the less their employer would withhold from their paychecks. However, the 2017 Tax Cuts and Jobs Act overhauled a lot of tax rules, including doing away with personal exemptions.
The new W-4, first introduced in 2020, still asks for basic personal information but no longer asks for a number of allowances. Now, employees who want to lower their tax withholding must claim dependents or use a deductions worksheet.
Do I have to update my W-4 form every year?
No. You are required to fill out a W-4 when you start a new job, but you do not have to fill out a new W-4 form every year if you already have one on file with your employer. However, it's a good idea to check on your tax withholding at least annually and as your life changes. Events such as divorce, marriage, new dependents, or side gigs can trigger a change in tax liability.
If you got a big tax bill when you filed your tax return this year and don’t want another, you can use Form W-4 to increase your withholding. That’ll help you owe less (or nothing) next time you file.
If you got a big refund this year, you may be giving the government a free loan and living on less of your paycheck throughout the year. If you want more of your paycheck sooner rather than later, you can consider using Form W-4 to reduce your withholding.
How to fill out a W-4
Step 1: Enter your personal information
Fill in your name, address, Social Security number and tax filing status. Importantly, your tax filing status is the basis for which you might qualify for certain tax credits and deductions, and there are rules about which ones you can use.
Step 2: Account for multiple jobs
If you have more than one job, or you file jointly and your spouse works, follow the instructions to get more accurate withholding.
For the highest paying job’s W-4, fill out steps 2 through 4(b) of the W-4. Leave those steps blank on the W-4s for the other jobs.
If you (or you and your spouse) have a total of two jobs and make roughly the same amount at both, you can instead opt to check box 2(c) to indicate this. The catch: You’ll need to do this on both W-4s.
If you don’t want to reveal to your employer that you have a second job or that you get income from other nonjob sources, you have a few options:
On line 4(c), you can instruct your employer to withhold an extra amount of tax from your paycheck.
Alternatively, don’t factor the extra income into your W-4. Instead of having the tax come directly out of your paycheck, send estimated tax payments to the IRS yourself instead.
Step 3: Claim dependents, including children
If your total income is under $200,000 (or $400,000 if filing jointly), you can enter how many kids and dependents you have and multiply them by the credit amount. (See the rules about the child tax credit and for when you can claim a tax dependent.) You can also choose to not claim dependents — even if you have them — if you need more taxes taken out of your paycheck to reduce your tax bill.
Step 4: Refine your withholdings
If you want extra tax withheld, or expect to claim deductions other than the standard deduction when you do your taxes, you can note that.
Step 5: Sign and date your W-4
Once completed, give the signed form to your employer's human resources or payroll team. You may also be able to fill it out online through your employer's payroll system.
Key takeaways
Steps 1 and 5 are required. The rest are optional, but filing them out could help you avoid a tax surprise later.
Use Step 2 if both spouses work or if you have more than one job. Read the instructions carefully here to avoid errors and not have too little (or too much) tax withheld.
If you're self-employed on the side, you can fill in Step 4(c) to have extra money come out of your paycheck to cover the taxes.
Where to find or download a W-4 for 2024
The IRS releases updated versions of certain tax forms each year to tweak language for clarity and to update references to certain figures, such as tax credits, that may be adjusted for inflation. The Form W-4 for 2024 is available on the IRS website or through your employer.
How to adjust your Form W-4
Tinkering is OK. You're allowed to give your employer a new W-4 at any time. That means you can fill out a new form, submit it and then review your next paycheck to see how much money was withheld. Then, you can start estimating how much you'll have taken out of your paychecks for the full year. If it doesn't seem like it'll be enough to cover your whole tax bill, or if it seems like it'll end up being way too much, you can submit another W-4 and adjust.
Here are some steps you might take toward a specific outcome:
How to have more taxes taken out of your paycheck
If you want more taxes taken out of your paychecks, perhaps leading to a lower bill or a tax refund when you file, here's how you might adjust your W-4.
Reduce the number of dependents.
Add an extra amount to withhold on line 4(c).
How to have less taxes taken out of your paycheck
If you want less taxes taken out of your paychecks, perhaps leading to having to pay a tax bill when you file your annual return, here's how you might adjust your W-4.
Increase the number of dependents.
Reduce the number on line 4(a) or 4(c).
Increase the number on line 4(b).
How to use a W-4 to owe nothing on a tax return
If your objective is to engineer your paycheck withholdings so that you end up with a $0 tax bill when you file your annual return, then the accuracy of your W-4 is crucial.
Use the correct tax filing status. If you file as head of household and haven't updated your W-4 for a few years, for example, you may want to consider filling out a new W-4 if you want the amount of taxes withheld from your pay to more accurately align with your tax liability. (Here's how to choose the right filing status.)
Make sure your W-4 reflects your current family situation. If you had a baby or had a teenager who turned 18 this year, your tax situation is changing and you may want to update your W-4.
Accurately estimate your other sources of income. Capital gains, interest on investments, rental properties and freelancing are just some of the many other sources of non-job income that might be taxable and worth updating on line 4(a) of your W-4.
Accurately estimate your deductions. The W-4 assumes you're taking the standard deduction when you file your tax return. If you plan to itemize (presumably because itemizing will cut your taxes more than the standard deduction will), you'll want to estimate those extra deductions and change what's on line 4(b).
Take advantage of the line for extra withholding. If you want to have a specific number of extra dollars withheld from each check for taxes, you can put that on line 4(c).
Need more help? The Form W-4 instructions include worksheets to help you estimate certain tax deductions you might have coming. You can also check out the IRS’ W-4 estimator to make sure your withholdings for the current year are on track. The estimator, available in both English and Spanish, can help you decide if you should make adjustments by completing a new W-4.
W-4 withholding calculator
Use our free W-4 withholding calculator below to get a general idea of how your tax withholding is stacking up this year. To use the estimator, locate your paystubs and use them to enter your current state and federal withholdings.
