How to Fill Out the W-4 Form 2023

How to Fill Out the W-4 Form 2023

how to fill out a w4 for dummies

You’ll also need to know how much you claimed in deductions on your last tax return. If you claimed the standard deduction, you don’t need to fill this out. If you claimed more than the standard amount, this worksheet will help you calculate how much more. Once you have this amount, you add any student loan interest, deductible IRA contributions and certain other adjustments. Students may wonder how to fill out their W-4, especially if they’re eligible to be claimed by their parents. In general, this comes down to your age and whether you earn enough to file a tax return in the first place.

  • This form got a major overhaul from the IRS in 2020, but there are some updates for 2023 as well.
  • Instead, if you want an additional amount withheld, you simply state the amount per pay period.
  • You can calculate these numbers with the help of the worksheet found on page 3 of the W4 form.
  • An unsigned and undated form is considered invalid, even if all the details are complete and correct.

Steps 2–4 only apply if you have multiple jobs, your spouse works, you have dependents, or you have other income, deductions, or extra withholding. If these don’t apply to you, you go can go directly to Step 5. The W-4 form is completed by an employee so that the employer can withhold the correct amount of federal income tax from your pay.

Step 4:

But the information 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. In this section, the IRS asks if you want an additional amount withheld from your paycheck. Check the box in option C if there are only two jobs total for the two of you, and do the same on the W-4 for the other job. Choosing this option makes sense if both earn about the same.

Whatever your scenario, if you find yourself filling out a W-4 for the first time, you may be a touch confused by all the fields, worksheets, and forms. As mentioned at the top of this post, your W-4 withholdings affect what’s taken out of your paycheck each period and your potential refund. In fact, they are related in that taking more taxes out of your pay can mean a larger refund—and the inverse can be true. This is also where you can reflect any other tax credits as well if you want the amount withheld from your paycheck.

Step 2: Indicate Multiple Jobs or a Working Spouse

That means you can fill out a W-4, give it to your employer 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. Use our free W-4 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. Then the employer will withhold single with zero allowances. The reason for this is that it will result in the most taxes withheld and prevent the employer from getting in trouble for not withholding enough New York State taxes.

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