Form W-4: Withholding Certificate

You fill out a W-4 when you start a new job. It tells your employer how much tax to withhold from each paycheck.

The 2020 Redesign

If you haven't filled out a W-4 in a while, it looks different. The IRS removed "allowances." It is now based on direct dollar amounts.

Step 1: Personal Info & Status

Filing status matters. If you select "Married Filing Jointly," the withholding tables assume you get the full $29,200 standard deduction. If your spouse also works, this will cause severe under-withholding.

Step 2: Multiple Jobs

If you hold two jobs, or you and your spouse both work, you must complete this step. The simplest method is checking the box in Step 2(c) if both jobs have similar pay.

Step 3: Dependents

This directly reduces withholding. It assumes $2,000 per qualifying child (Child Tax Credit) and $500 for other dependents.

If you got a massive refund last year, your withholding is too high. You gave the government an interest-free loan. Adjust your W-4 to keep more money in your paycheck.