Question 1

How do I fill out my W-4 form?

Accepted Answer

To fill out your W-4 form: Step 1 - Enter your personal information and filing status. Step 2 - Complete if you have multiple jobs. Step 3 - Claim credits for dependents ($2,000 per qualifying child under 17). Step 4 - Make other adjustments including other income, deductions, and extra withholding.

Question 2

How many allowances should I claim on my W-4?

Accepted Answer

The 2020 W-4 form no longer uses allowances. Instead, you enter your filing status, number of dependents, other income, and deductions. This new format helps ensure you have the correct amount of tax withheld from your paycheck.

Question 3

Should I aim for a tax refund or owe taxes?

Accepted Answer

Ideally, you want to neither owe significant taxes nor receive a large refund. If you owe less than the lesser of $1,000 or 10% of your actual tax, you will avoid penalties. A large refund means you are giving the government an interest-free loan throughout the year.

Question 4

When should I update my W-4?

Accepted Answer

You should update your W-4 when: 1) You get married or divorced, 2) You have a child or adopt, 3) You buy or sell a home, 4) Your spouse starts or stops working, 5) You have additional income such as investments, 6) You owe taxes or get a large refund.

W-4 Withholding Calculator

W-4 Withholding Calculator

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W-4 Form Steps Reference

Step 1: Your Information

Step 2: Multiple Jobs

Step 3: Dependents

Step 4: Other Adjustments