Form W-4 explained

Form W-4 tells your employer how much federal income tax to withhold from your pay. It doesn't change the tax you owe for the year, only how much is paid in advance through your paychecks. Fill it in to match your situation and withholding should land close to your actual tax; leave it blank or out of date and you're more likely to get a large refund or a bill when you file.

The current form, used since 2020, has no allowances. Instead it asks for your filing status, other jobs, dependents, other income and deductions in dollars. This guide follows the 2026 form step by step. To see what your own choices do to a paycheck, enter them in the paycheck calculator under "More options".

What the W-4 doesn't cover

The W-4 only affects federal income tax. Social Security and Medicare are flat percentages of your pay and don't change with anything on the form. State income tax usually has its own form, and some states use your federal W-4 instead; the state section near the end covers that.

Step 1: personal information and filing status

Step 1 asks for your name, address and Social Security number, and in Step 1(c) your filing status: single or married filing separately, married filing jointly or qualifying surviving spouse, or head of household. The form describes head of household as for people who are unmarried and pay more than half the costs of keeping up a home for themselves and a qualifying individual.

Filing status sets which standard deduction and tax brackets your employer's payroll system uses. If you complete only Steps 1 and 5, withholding is based on that filing status's standard deduction and rates with no other adjustments, which works for many people with one job and no dependents.

Step 2: more than one job, or a spouse who works

Step 2 is for you if you hold more than one job at a time, or if you're married filing jointly and your spouse also works. Each employer only sees its own pay, so without Step 2 each one withholds as if its job were your only income, and the total withheld can fall short. The form gives three options, and you use only one:

• (a) Use the IRS Tax Withholding Estimator online. The form ranks this option first for precision, and says to use it if you or your spouse have self-employment income.
• (b) Use the Multiple Jobs Worksheet on page 3 of the form and enter the result in Step 4(c) as extra withholding.
• (c) If there are only two jobs in total, check the box in Step 2 on the W-4 for both jobs. Payroll then cuts the standard deduction and tax brackets in half for each job. The form says this works well when the two jobs pay about the same, and withholds more than necessary the bigger the gap in pay.

With more than one job, complete Steps 3 to 4(b) on only one W-4, ideally the one for the highest-paying job, and leave them blank on the others.

Step 3: dependents and other credits

Step 3 lowers your withholding for credits you expect to claim. If your total income will be $200,000 or less ($400,000 or less if married filing jointly), you multiply:

• the number of qualifying children under 17 by $2,200, for the child tax credit;
• the number of other dependents, such as an older child or a qualifying relative, by $500.

You can add other credits you expect, such as education credits, and enter the total. Payroll subtracts this yearly amount from your withholding, spread over your paychecks, so each paycheck gets bigger and any refund smaller.

Step 4: other income, deductions and extra withholding

Step 4 has three optional lines:

• 4(a) Other income not from jobs, such as interest, dividends or retirement income. Adding it here increases withholding so you may not need to make estimated tax payments for that income.
• 4(b) Deductions other than the basic standard deduction, from the Deductions Worksheet on page 4. That includes itemized deductions and other deductions the form lists, such as qualified tips, overtime compensation, passenger vehicle loan interest, student loan interest, IRAs and seniors. Entering an amount reduces withholding.
• 4(c) Extra withholding: any additional tax you want taken from each paycheck, including the result from the Multiple Jobs Worksheet. It's the simplest way to have more withheld.

Step 5: sign

The form isn't valid until you sign and date it. Your employer fills in the bottom section.

How the choices change a paycheck

Here's federal withholding on the same salary with different W-4 entries, computed with the same engine as the calculator:

Checking the Step 2 box raises withholding because each job is taxed as if it were half of a household's income. Claiming a child in Step 3 and filing as head of household lowers it. None of these change Social Security or Medicare.

Claiming exemption from withholding

You can claim exemption from federal income tax withholding only if you had no federal income tax liability last year and expect none this year. You certify that by checking the box under Step 4 and completing only Steps 1(a), 1(b) and 5. An exemption lasts one year: the form says to submit a new W-4 by its February deadline the following year, or withholding starts again. Social Security and Medicare are still withheld.

When to file a new W-4

You can give your employer a new W-4 at any time. The form suggests updating it when your situation changes in a way that would change your entries, and using the IRS estimator if you start a job partway through the year, work only part of the year, have a change in marital status, jobs, dependents, deductions or credits, or receive bonuses or other income. A new W-4 only affects paychecks processed after your employer puts it into effect, so a change late in the year has fewer paychecks to make up any difference.

If you got a raise, the pay raise calculator shows how the extra pay is withheld with your current W-4. If you work overtime regularly, the overtime calculator shows the extra gross pay, which is withheld at the same W-4 settings as the rest of your wages.

State withholding forms

Most states with an income tax use their own certificate, often with allowances like the old federal form, and some use your federal W-4. For example:

• California has Form DE 4, New Jersey Form NJ-W4 and Minnesota Form W-4MN, each with its own allowances.
• New Mexico and North Dakota use your federal W-4 rather than a state form.
• States without a wage income tax, such as Texas and Florida, need no state form at all.

Each state calculator page explains its form and lets you enter the state allowances in the calculator.

Common mistakes

• Claiming dependents on two W-4s. With two jobs, or two working spouses, Step 3 should be completed on only one form; claiming the same children twice under-withholds.
• Using Step 2 on one job only. The Step 2(c) box works only if it's checked on both jobs' forms.
• Forgetting other income. Interest, dividends and side income aren't withheld on unless you add them in Step 4(a) or ask for extra in Step 4(c).
• Never updating. A W-4 from before a marriage, a new child or a second job no longer matches your situation.

The W-4 is an estimate by design. For complex situations, the IRS estimator or a tax professional can help you choose the entries.