How to Fill Out a W4 Form

IRS Form W-4 is filled out by employees to direct their employers on how much federal withholding to deduct from their paychecks.

Difficulty: Moderately Easy

Instructions

1. Obtain a W-4 Form. Most employers will supply a new hire with a form. If they do not, the form can be downloaded through the IRS website.

2. Fill in biographical information. The first part of the form (in the center of the page) simply asks for the employee's name, address, Social Security number, and marital status. Married employee's can designate the preference for the higher single withholding rate to be applied to their pay.

3. Complete the Personal Allowance Worksheet. The top half of the full W-4 Form contains lines A through H, on which the employee calculates their total number of allowances. The first several lines relate to whether the filer is an independent, married, is claiming dependents, and is the head of a household. Lines E and F relate to child care tax credits.

4. Itemize deductions on Page 2 (if necessary). If the employee intends to itemize his deductions, this is done on the Deductions and Adjustments Worksheet on the second page of Form W-4.

5. Combine income from multiple jobs on page 2 (if necessary). A filer who has more than one job, or is married to someone who also works, and if the combined earnings from all jobs exceed $40,000, must complete the Two-Earners/Multiple Jobs Worksheet on page 2 to avoid having too little tax withheld.

6. Fill in line 5. The entry on line 5 of Form W-4 will be the final result (line 9) of the Two-Earners/Multiple Jobs Worksheet if this area was filled out. If not, it will be the result (line 10) of the Deductions and Adjustments Worksheet, if this was filled out. If neither of these supplementary worksheets were completed, the entry on line 5 is the end result (line H) of the Personal Allowance Worksheet.

7. Complete the remainder of the form. The remaining lines on the W-4 ask for any additional deductions the employee would like withheld from their paycheck. There are also spaces for the employee's signature and contact info to be filled out by the employer.

8. Tear and submit. Separate the bottom half of page 1, which is the only part of the form that needs to be filed. The completed W-4 should be submitted to the employer.

Tips & Warnings

• The more deductions an employee can claim, the less will be deducted from their pay. On the other hand, the more that is withheld, the more likely the chance the employee will receive a tax refund. Fill out a new W-4 every year, or at least every time your personal information changes. If your income for the year will be less than $800, you are exempt from withholding. Skip lines 5 and 6, and write "EXEMPT" on line 7.

Resources

• Form W-4
• Form W-4 & Wage Withholding
• W-4 Tax Tips