Top 10 Tips for Completing the W-4 Form
February 17, 2026
If you’re starting a new job, want to boost your tax refund, or want to avoid making estimated tax payments, get familiar with IRS Form W-4.
The W-4 form is used to determine how much income tax should be withheld from your wages. That's the basic purpose of the W-4 form. And while simple in principle, it's important to get your paycheck withholding correct. Otherwise, you may be in for a big surprise when you file your next tax return.
But the W-4 form can be used for other reasons too. If you have a side hustle and don't want the hassle of quarterly estimated tax payments, you can sign up for extra withholding using the W-4 form. It also works for any dividend or interest income during the year.
To complete the W-4 form, you'll need to include things like your expected filing status, family income from other jobs, number of dependents, and tax deductions you plan to claim. Your employer may offer an electronic version of the form. Once your employer has the necessary information, the company will take it from there and do the necessary calculations. But to help make sure you get it right, here are 10 tips every employee needs to know about the W-4 form.
Tip 1: You don't need to submit a W-4 form every year
You aren't required to file a W-4 form with your employer every year. If you're happy with your current tax withholding, then do nothing and leave your current Form W-4 in effect with your employer.
However, when you start a new job, you're required to complete a W-4 form at that time. That's the only way your new employer will know how much federal income tax to withhold from your wages.
You also must file a new W-4 form if you want to adjust the amount of tax your current employer withholds from your paycheck. Ideally, you want the total amounts of your annual withholding and your tax liability for the year to be close, so that you don't owe a lot or get back a lot when you file your return. A large refund just means you gave the IRS an interest-free loan.
If you owed more tax than you expected last year, use the IRS's Tax Withholding Estimator to make sure you're on track — the earlier in the year, the better. If your tax withholding is off-kilter, go ahead and submit a new W-4 as soon as possible. This is especially important if you have a major change in your life, such as getting married or having a child.
Tip 2: The W-4 form is easy if your taxes are simple
The W-4 form is simple if you only have one job and your taxes are straightforward — you're not filing a joint return with a spouse who works, you don't have dependents, you're not itemizing or claiming deductions other than the standard deduction, you're not claiming tax credits, and you don't have additional income from self-employment, rental property, dividends, or interest. If that describes you, all you have to do is provide your name, address, Social Security number, and filing status, and then sign and date the form. That's it — you're done! Your employer will compute your tax withholding based on the standard deduction and tax rates for your filing status, with no other adjustments.
Tip 3: The W-4 form takes longer if your taxes are complex
If your taxes are more complicated, it will likely take you more time to complete a W-4 form. That's because you'll need to have on hand information about your spouse's income, your dependents, tax credits, and the deductions you expect to claim. Unless you know these numbers off the top of your head, you may need to take the form home to complete it.
Tip 4: Multiple jobs and employed spouses require more information
Having multiple jobs or a spouse who is also employed can affect the amount of tax withheld from your wages. Tax rates increase as income rises, and only one standard deduction can be claimed on each tax return, regardless of the number of jobs. As a result, if you have more than one job at a time or file a joint return with a spouse who is also employed, more money should be withheld from the combined pay for all the jobs. Adjustments to your withholding must be made to avoid owing additional tax and potential penalties when you file your tax return.
Fortunately, the W-4 form has a section where you can provide information about additional jobs or a spouse’s income so that your withholding can be adjusted accordingly. Step 2 of the form lists three different options to choose from. The IRS recommends completing a W-4 for all your jobs to get your total withholding as close to your expected tax liability as possible.
Tip 5: Take tax credits and deductions into account
The W-4 form makes it easy to adjust your withholding to account for tax credits, such as the child tax credit, education, and foreign tax credits, and deductions. Including credits and deductions on the form will decrease the amount of tax withheld, increasing your paycheck and reducing any refund you may get when you file your tax return.
For deductions, enter amounts other than the standard deduction on Line 4(b), such as those for student loan interest and IRAs. Do not include the standard deduction itself. If you have multiple jobs or a working spouse, complete Step 3 and Line 4(b) on only one W-4, preferably for the highest-paying job.
Tip 6: The IRS has an online tool to help you complete a W-4 form
To get the most accurate withholding, use the IRS's Tax Withholding Estimator. You'll also want to use this tool if you expect to work only part of the year, have dividend income or capital gains, are subject to additional taxes such as additional Medicare tax, or have self-employment income.
The IRS doesn't save or record the information you enter, making it useful if you want to keep private income confidential.
Tip 7: You can set up extra withholding for non-wage income
If you receive taxable income that isn't from wages—like interest, dividends, or distributions from a traditional IRA—you can have your employer withhold tax from your paycheck to cover the extra taxes. Put the estimated amount on Line 4(a) of your W-4. Don't include income from a side gig here.
Tip 8: You can set up extra withholding for a side hustle
If you have a side job as an independent contractor, you can use the W-4 form to withhold extra taxes from your regular paycheck to cover your side gig tax liability. Use the IRS Tax Withholding Estimator for accurate calculation. Self-employment income should not be reported as "other income" on Line 4(a).
Tip 9: You can claim a withholding exemption
You can claim an exemption by writing "Exempt" below Line 4(c), along with your name, address, Social Security number, and signature. As of 2025, you qualify if you had no tax liability in the previous year and expect none this year. Be aware claiming exempt means no federal income tax withheld, which can lead to owing tax and penalties at filing. An exemption is good for one year; you must submit a new W-4 to claim it annually.
Tip 10: Extra withholding can increase your tax refund
If you want a larger tax refund, you can add an additional amount on Line 4(c) for extra withholding. This reduces your take-home pay but will increase your refund or reduce taxes owed. Use the IRS Tax Withholding Estimator to determine appropriate extra withholding.
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