How to Fill Out the New W4: Tax Season Resources

how to correctly fill out a w4

Fill out the Multiple Jobs Worksheet, which is provided on page 3 of Form W-4, and enter the result in step 4, as explained below. It is also a good idea to update your W-4 anytime you experience a big life change—such as the birth of a child, a marriage or divorce, or a new freelance job on the side. In addition to Investopedia, she has written for Forbes Advisor, The Motley Fool, Credible, and Insider and is the managing editor of an economics journal. She is a graduate of Washington University in St. Louis.

  • By using the tax professionals at Check City you can get all of your taxes prepared at a reasonable price, so you don’t have to worry about doing taxes alone.
  • W-4 is a form that employees fill out during their first month of employment while the W-2 is a form employers fill out every year for their employees.
  • While you can stop here and allow your employer to simply withhold at default levels, the easiest path may not be the best.
  • Form W-4 tells your employer how much tax to withhold from each paycheck.
  • If you don’t know whether you’ll likely receive a refund or owe money, TurboTax’s tax withholding calculator can help you figure out what to expect.
  • Things like full name and taxpayer identification number are captured in this form.

Next, you’ll need to add the wages from your two highest-paying jobs together. Onboarding paperwork can be overwhelming for both HR professionals and candidates, and the W-4 form–also known as Form W-4–are among the documents that a new hire must complete before starting a new job.

How to fill Form W-4 on Mac

If you want to understand your taxes better and learn how to fill out a federal W-4, keep reading for a comprehensive explanation. If you’re saving for a vacation, you won’t earn interest letting the federal government hold your money as you would if you put the money in a high-yield savings account. You could use the money to pay off debt throughout the year, saving money on the interest you would have paid waiting for your refund.

  • You can also submit more withholdings in line 4, which will indicate to your employer that you would like them to withhold more than they currently are.
  • But, this will sometimes result in a refund check and much smaller paychecks throughout the year.
  • Form, personal allowances no longer need to be included for 2020 and forward.
  • An employee’s elections on Form W-4 provide the employer with the factors needed toaccurately calculate withholding.
  • This is the simplest online W-4 tool; use this for any filing status with 1 simultaneous job (you and/or your spouse each have one job at the given time).
  • Remember, for if there are multiple jobs, the employee should only fill out Steps 2-4 for the highest paying one and leave those steps blank on the other W-4s.

Print out the form W-4, sign it and hand it over to your employer. If you’re being asked to fill out the form W-4 by a customer or client, they will also likely provide you with a copy of the form. If not, you can always download the IRS Form W-4 on your Mac. While there are several websites that host a copy of the form, we recommend downloading the W-4 form directly from the IRS website here so that you always have the latest and correct version of the form. Filling out tax paperwork is always a hassle, especially when you come across different types of forms with similar sounding names.

You Can Increase Your Tax Refund

The system should also be able to keep track of every time an employee makes changes to the W4. Should employers offer paid time off or separate sick leave, vacation and personal leave days?

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What changed on the new W-4?

When you sign this form you are also stating that “under penalties of perjury, declare that this certificate, to the best of knowledge and belief, is true, correct, and complete.” On the old W4 form, this section was where you’d mark the number of allowances you need. Since the IRS got rid of this step, it’s been replaced with these estimated monetary figures.

We at recognize the complexity of the design of the W-4 form and we are here to assist you at every level. We consider the W-4 Form an important part of your financial and tax return planning. You can check off this box on the W-4 form if there are only two jobs in total and both jobs have similar pay.

Step 2: Account for multiple jobs

What’s more, when you complete your W-4, it doesn’t go to the IRS but instead to your employer who will keep the form on file for at least four years. The IRS, however, reviews withholdings, so it’s important to complete your W-4 how to fill out w4 form correctly, or you could end up with a higher tax bill. You can change information on your W-4 as needed. If you start a new job and you’re making the same pay, for example, you can check the box on 2C for both of these jobs.

how to correctly fill out a w4

The W-4 Adjust tool will let you adjust your tax withholding before you sign and create your W-4 for the current tax year. You will actually know the calculated withholding amount. Don’t forget to sign and date the W-4 before turning it in to your employer. Fill out the Multiple Jobs Worksheet, provided on page three of Form W-4, and enter the result in Step 4, as explained below. The IRS recommends only filling out the worksheet on one W-4 form per household, entering only the result of the highest-paying job. Remember, for if there are multiple jobs, the employee should only fill out Steps 2-4 for the highest paying one and leave those steps blank on the other W-4s. In order to file exempt on your W4, you’ll need to meet certain requirements.

One likely cause is if you receive significant income reported on Form 1099, which is used for interest, dividends, or self-employment income on which you have not yet paid taxes. Or, you may be still working but receiving pension benefits from a previous job or Social Security retirement benefits. But the information that you’ve provided in the previous sections might result in your employer withholding too little tax over the course of the year. That could land you with a big tax bill and possibly underpayment penalties and interest in April.

how to correctly fill out a w4

$12,000 is then what I would write in the third dollar box in step 3 of this form. In the third and final dollar box, you will write the total, adding the numbers calculated in the first 2 dollar boxes together. If you have a total income of $200,000 or less as a single filer or $400,000 or less as a joint filer then you will fill out this section. Basically, if your household income includes more than 1 job between you and your partner then fill out this step. You will only fill out the following steps if they apply to you. If they do not apply to you, then skip to step 5 and leave steps 2 through 4 empty. In this section of step 1 there is a box with three options you can choose by marking the appropriate checkbox.

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Step 4: Factor in additional income and deductions

Enter “$25,100” if you are married filing jointly or a qualified widow. Using the highest paying job, enter the number of yearly pay periods. For jobs that pay weekly, enter 52; for jobs that pay every other week, enter 26; and for jobs that pay monthly, enter 12. For 2b, add the value for the two jobs that have the highest annual wages. Use that total when reviewing the “Higher Paying Job” row.

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