What Is Form W-4?
IRS Form W-4, also known as the Employee’s Withholding Certificate, tells your employer how much federal income tax to take from your paycheck. The IRS uses this withholding amount to cover part of your annual tax bill throughout the year.
A W-4 form typically requests details such as your filing status, dependents, and other income or deductions. This helps your employer determine the correct amount of tax to withhold. You must complete a W-4 whenever you start a new job.
You don’t need to send the Form W-4 to the IRS. Your employer keeps it in their records and uses it to calculate your withholdings. The rules for employers are outlined in IRS Publication 15, which covers the process of handling employee withholding.
If your W-4 is out of date, your employer might take out too much or too little tax. This can happen if you get a second job, lose deductions, or add dependents. A minor update can help you avoid a surprise tax bill or a smaller paycheck.
Changes For the 2025 Tax Season
The IRS has not redesigned Form W-4 since 2020. This update removed the withholding allowance and replaced it with a more straightforward five-step process. The 2025 version of the W-4 Form retains the original format but includes a few minor updates.
- Use the IRS Tax Withholding Estimator: The Tax Withholding Estimator remains the IRS’s top recommendation for accurate results, particularly for individuals with multiple jobs, a working spouse, or other income sources.
- Update Multiple Jobs Worksheet: The worksheet may reflect updated tax brackets. If you or your spouse has more than one job, you’ll need to complete this section to ensure that the correct amount is withheld.
- Inflation Adjustments: The IRS has adjusted the standard deductions and tax brackets for the 2025 tax year. This could change the amount of tax your employer withholds.
If you haven’t updated your W-4 since 2020, the IRS recommends submitting a new one for every current job.
Who Needs to Fill Out Form W-4?
All new employees must complete Form W-4 before they receive their first paycheck (IRS Topic No. 753). This form tells your employer how much federal income tax to withhold from your wages. Furthermore, the IRS also recommends updating your W-4 if you go through a major life change, such as:
- Getting married or divorced
- Having or adopting a child
- Starting a second job
- A spouse beginning or leaving work
- Changes in income or deductions
How to Fill Out the IRS Form W-4
Here are the steps you should follow to fill out your IRS W-4 form accurately. Legal Templates offers a free, fillable PDF IRS W-4 form to help you complete each section quickly and correctly. The information you provide in each section will help your employer deduct the right amount of tax from your paycheck.
Step 1 – Share Personal Information
Provide your full legal name, address, Social Security number, and filing status (single, married, or head of household). This sets the base for your withholding.
Step 2 – Account for Multiple Jobs or a Working Spouse
Complete this section if you have more than one job or if your spouse works. You must complete one of the following actions for this section:
- Use the IRS Tax Withholding Estimator
- Fill out the multiple jobs worksheet on page 3
- Check the box in Step 2(c) if one job earns significantly less than the other.
This helps your employer withhold accurately across all income sources.
Step 3 – Claim Your Dependents
If you support children or other dependents, you may be able to lower your tax withholding by claiming credits in this step. You can enter:
- $2,200 for each qualifying child who is 17 or younger and lives with you for more than half the year
- $500 for each dependent who doesn’t meet the child tax credit rules but relies on you for financial support
These credits have income limits. You may claim the full amount if your income is $200,000 or less, or $400,000 or less if you file a joint return. The credit begins to phase out when your income rises above those limits.
Step 4 – Add Other Income or Adjustments
This step is optional. Only complete it if you expect other income or deductions, or if you want extra tax withheld.
- 4(a) – Other Income: Add your non-job income that isn’t subject to withholding. This includes interest, dividends, or retirement income.
- 4(b) – Deductions: If you plan to itemize deductions instead of taking the standard deduction, use the “Deductions Worksheet” on page 3 to calculate and enter your amount here.
- 4(c) Extra Withholding: If you want more tax taken out each pay period, enter that amount in this field. This can help you avoid underpayment penalties or cover additional income sources.
Step 5 – Sign and Submit
Review your entries for accuracy, then sign and date the form to make it official. Your employer will fill out the “Employers Only” section. This includes their name, address, Employer Identification Number (EIN), and your start date.
Many states have their own tax withholding forms in addition to the federal W-4. Check with your state’s tax agency to see if you need to fill out a separate state form.
Sample IRS W-4 Form
Below you’ll find a sample IRS W-4 form that shows how to complete each section with the right personal and tax information. Start your 2025 W-4 by adding your details directly on the PDF. You can also get a free printable W-4 form to give your employer a clear record of your tax withholding preferences.
Special Considerations for Form W-4
Some individuals may have a unique tax situation that will affect how they fill out the W-4 form. If you fall into one of the groups below, here are some important things to keep in mind:
Claiming Exemption from Withholding
You may qualify for an exemption if:
- You had no federal income tax liability last year
- You expect to owe no federal income tax this year
To claim an exemption:
- Fill out Steps 1(a) and 1(b) on your W-4 form
- Write “Exempt” in the space under Step 4(c)
For the 2025 tax year, the IRS required you to submit your request by February 17, 2025. Otherwise, your employer will withhold taxes. For the 2026 tax year, the due date for Form W-4 is February 16, 2026.
You cannot claim yourself as a dependent on Form W-4. Instead, you can only reduce or remove withholding if you meet the IRS rules for exemption. These are different from claiming dependents on your tax return.
Students and Part-Time Workers
If you’re a student or only working part-time, you might not earn enough to owe federal income tax. In that case, you may be eligible to claim an exemption on your W-4. This means your employer won’t withhold any federal income tax from your paycheck as long as you qualify under IRS rules. Just make sure:
- You owed no federal income tax last year
- You don’t expect to owe any this year
Employees Who Started in the Middle of the Year
If you expect to work fewer than 245 days in the year, you can ask your employer to use the part-year method for calculating withholding. This method reduces the amount of tax withheld, which helps keep more money in your paycheck early in the year.
Retirees
If you receive regular pension or annuity payments, you may need to fill out Form W-4P instead of the regular W-4. This helps the payer calculate the amount of tax to withhold from your retirement income.
Claiming “0” on Your W-4
Although the 2025 W-4 form no longer uses allowances, some people still refer to “claiming 0” when they want the most tax withheld from each paycheck. You can do this by entering an extra withholding amount in Step 4(c). This may be helpful if you have a side income or prefer getting a larger tax refund.
W-4 vs. W-2: What Is the Difference?
The W-4 and the W-2 are both IRS tax forms, but they serve different roles in the payroll and tax filing process.
- Form W-4 is filled out by the employee to tell the employer how much federal tax to withhold from their pay.
- Form W-2 is filled out by the employer and summarizes how much the employee earned and how much tax was withheld during the year.
What Employers Need to Know
It’s important to understand your responsibilities when collecting and using the Form W-4. Here’s what you need to know to stay compliant with IRS rules.
When to Collect the W-4 Form
Employers must have a completed Form W-4 on file for each new hire before issuing their first paycheck. You do not send W-4 forms to the IRS. Employers must keep them on file and use them to calculate tax withholding reported through Form 941 or Form 944.
If an employee does not submit a W-4, the IRS instructs you to withhold as if the employee is single with no adjustments. This usually results in more tax being withheld from each paycheck.
Lock-In Letters
If the IRS believes that an employee’s withholding is too low, it may send a lock-in letter requiring you to withhold tax at a specific rate. You’re legally required to follow the instructions in the letter. You cannot make changes to the letter unless the IRS authorizes these changes. Inform the employee, but do not delay applying the lock-in changes.
W-9 for Independent Contractors
The W-4 form is only for employees. If you’re paying a freelancer, independent contractor, or vendor, request a Form W-9 instead. This form provides the Taxpayer Identification Number (TIN) and other necessary details to issue a Form 1099-NEC, Form 1099-MISC, and other information returns for tax reporting purposes.
