IRS W-4 Explained

What is IRS W-4?

The IRS W-4 form, officially known as the Employee's Withholding Certificate, is a federal tax document that employees use to specify how much federal income tax should be withheld from their paychecks. This form helps employers calculate the correct amount of tax to deduct, based on the employee’s personal situation. It’s essential for ensuring that employees don’t pay too much or too little in taxes throughout the year.

Fill out IRS W-4 online

Get the latest version of the form and complete it in minutes.

Get IRS W-4

Purpose of IRS W-4

The primary purpose of the IRS W-4 is to inform your employer how much federal income tax to withhold from your wages. By accurately completing this form, you are helping to ensure that your tax obligations are met without resulting in a large tax bill or refund when you file your annual return. This becomes particularly important if you experience changes in your financial situation, such as starting a new job, getting married, or having a child. The W-4 plays a critical role in managing your tax liability throughout the taxable year.

Where is IRS W-4 used and by whom?

Several groups use the IRS W-4, including:

1.

Individuals: Employees of businesses who want to manage their withholding amounts.
2.

Employers: Businesses must collect a W-4 from each employee to determine the withholding amounts.
3.

New hires: When you start a new job, you will typically need to complete a W-4 form.
4.

Self-employed individuals: Certain self-employed individuals may use the W-4 to adjust withholding for estimated taxes.

Specific scenarios for using the W-4 include: an employee seeking to reduce their withholdings after a life change or a new employee starting at a company who needs to set their initial withholdings.

Step-by-step: how to fill out IRS W-4

Completing the IRS W-4 is straightforward. Here’s a step-by-step guide:

1.

**Personal Information**: Fill out your name, Social Security number, address, and filing status (single, married, etc.).
2.

**Multiple Jobs or Spouse Works**: If applicable, complete the section to account for multiple jobs or a working spouse.
3.

**Claim Dependents**: If you have dependents, you can claim tax credits here.
4.

**Other Adjustments**: Indicate if you’d like additional withholding or expect to claim other tax credits.
5.

**Signature and Date**: Sign and date the form to validate it.

Using pdfFiller, you can easily fill out the W-4 online, save, and print your completed form.

Who is required to complete IRS W-4?

Any individual working as an employee for a business is required to complete the IRS W-4 form. Specifically, this includes:

1.

Newly hired employees: All new employees must submit a W-4 upon starting their job.
2.

Employees wishing to adjust their withholding: If your tax situation changes (e.g., marital status, number of jobs), it is advisable to update your W-4.

Employers cannot withhold federal income tax without a completed W-4. This makes it a vital requirement in the employment process.

Information you need to complete IRS W-4

Before you fill out the W-4, gather the following information:

1.

Your full name and Social Security number.
2.

Your filing status (single, married, or head of household).
3.

The number of dependents you can claim.
4.

Details about any other sources of income that may affect your withholding.
5.

Any deductions you plan to claim that might affect your tax situation.

Having this information ready will help streamline the process of completing the W-4.

How to submit IRS W-4

Once you have completed the W-4 form, you need to submit it to your employer, not the IRS. There are several ways to do this:

1.

In-person: Hand it directly to your HR department or payroll office.
2.

Email: Some employers may allow you to send a scanned copy via email.
3.

Online submission: If your employer uses an online portal, you may be able to submit the W-4 digitally.

Make sure to check with your employer about submission preferences and deadlines to ensure proper handling.

When to update or refile IRS W-4

It’s important to keep your W-4 up-to-date to avoid any tax withholding issues. You should consider updating or refiling your W-4 in these situations:

1.

When you experience a life change: Changes such as marriage, divorce, or the birth of a child can affect your tax situation.
2.

If you start or stop working a second job: More jobs can change your overall tax withholding.
3.

Annual review: It’s a good practice to review your W-4 annually, especially before the tax season.

Updating the form as your situation changes helps maintain accurate withholding and avoids tax surprises.

What happens if you don’t file IRS W-4?

Failing to file a W-4 may have significant consequences:

1.

Your employer may withhold taxes at the highest rate, leading to a larger deduction from your pay than necessary.
2.

You may end up owing a substantial amount when filing your tax return, resulting in penalties and interest if taxes are owed.
3.

Not completing the form could delay your payroll processing as employers often require this form to set up taxes correctly.

It's crucial to complete and submit the W-4 to ensure accurate tax withholding and avoid potential financial stress during tax season.

Fill out IRS W-4 online

Get the latest version of the form and complete it in minutes.

Get IRS W-4

Frequently Asked Questions About the IRS W-4

What is the IRS W-4 form and why is it important?

The IRS W-4 form is a crucial document that employees fill out to inform their employer about their tax situation. It determines the amount of federal income tax withheld from their paycheck, which directly impacts take-home pay. Accurately completing the IRS W-4 can help you avoid owing money at tax time or receiving a large refund.

How often should I update my IRS W-4 form?

You should update your IRS W-4 form whenever you experience significant life changes that could affect your tax situation, such as marital status changes, new dependents, or changes in income. It's a good practice to review the form annually to ensure your withholding aligns with your current situation. Keeping your IRS W-4 up to date helps manage your tax liability more effectively.

Who needs to complete an IRS W-4 form?

Any employee who wishes to adjust their tax withholding needs to complete the IRS W-4 form. This includes new hires, employees changing their tax situation, or those wanting to modify their current withholding amount. If you're not having enough tax withheld, filling out the IRS W-4 accurately can help you manage your tax burden better.

How do I calculate my withholding allowances on the IRS W-4?

To calculate your withholding allowances on the IRS W-4, you'll need to consider your income, tax credits, and deductions. The form includes worksheets to help you determine the right number of allowances based on your financial situation. This calculation is essential to ensure the right amount of tax is withheld from your paycheck.

What changes were made to the IRS W-4 form in 2020?

In 2020, the IRS W-4 form underwent a significant redesign to simplify the withholding process and better reflect the changes from the Tax Cuts and Jobs Act. The new form eliminates the use of withholding allowances and focuses more on personal income and credits. Users are encouraged to use the IRS's Tax Withholding Estimator for accurate completion of the updated IRS W-4.

Can I submit my IRS W-4 form electronically?

Yes, many employers now allow employees to submit their IRS W-4 forms electronically, simplifying the process. You should check with your HR department to see if this option is available. Submitting the IRS W-4 electronically can speed up processing and ensure that your tax withholding is updated promptly.

What happens if I don’t submit an IRS W-4 form?

If you do not submit an IRS W-4 form, your employer will withhold taxes as if you are single with no allowances. This typically results in the maximum tax being withheld from your paycheck. To avoid potential issues with over-withholding, it is advisable to complete and submit an IRS W-4 form as soon as possible.

How does my marital status affect my IRS W-4?

Your marital status has a significant impact on how you fill out your IRS W-4 form. Married individuals typically have different withholding options and may benefit from claiming more allowances. If you marry, adjust your IRS W-4 to reflect your new status, as it can lead to more accurate tax withholdings and prevent surprises at tax time.

What options do I have if I want more tax withheld on my IRS W-4?

If you prefer to have more tax withheld, you can specify an additional amount on your IRS W-4 form. Simply indicate that additional amount in the designated section on the form to ensure your employer withholds more from each paycheck. This can be a proactive approach if you anticipate owing taxes at the end of the year.

Where can I find the IRS W-4 form for completion?

You can find the IRS W-4 form on the IRS website, where it is available for download and printing. Many employers also provide digital versions or paper copies for employees to fill out. Ensuring you have the latest version of the IRS W-4 is critical for accurate withholding and compliance with tax regulations.

Author:

by Iryna Marchuk

Lead Writer/Blogs Manager at airSlate

Disclaimer: This content is for informational purposes only. It is not legal or other professional advice. airSlate provides this material on an "as-is" basis and disclaims all representations, guarantees, or warranties, whether express, implied, or statutory, including but not limited to warranties of merchantability, fitness for a particular purpose, or accuracy.