How to Fill Out W-4 Form in 2025: Step-by-Step Guide

If you ever applied for a new job, you must be familiar with the W-4 Form. You also probably know that one should approach the procedure responsibly, as the information you add to the form will impact your tax refund and the amount of money withheld from your paycheck. A lot of people choose the standard deduction route and only note their own personal details. But did you know that any dependents or additional might change your withholding rate?

There are lots of nuances like this that you should pay attention to when completing the form. In this guide, we’ll discuss the exact process of filling out a W-4 form and the situations that require it.

What Is a W-4 Form, and How Does It Work?

Form W-4, otherwise known as Employee’s Withholding Certificate, is the Internal Revenue Service document that employees need to fill out when they start a job. The purpose of this form is to inform the employer about how much federal income tax needs to be withheld from the employee’s paycheck. The more precise you are when adding information to the form, the less you will owe when filing annual income taxes.

Your filing status, the presence of dependents, and whether you have another job all impact how you should fill the form. Since the overhaul of the tax withholding form in 2020, W-4 has five sections instead of seven.

How to Fill Out a W-4: Step-by-Step

Understanding W-4 and its purpose is good and all, but let’s take a look at how to actually fill a W-4 form 2024. There are five sections, but whether you need to fill all of them will depend on your situation.

Step 1: Provide your personal details

The form starts with a section where you need to enter your personal information, such as:

• Full name;
• Social security number;
• Full address;
• Tax filing status (single, married filing jointly, married filing separately, head of household, or qualifying surviving spouse).

Some employees, particularly unmarried and without dependents, stop at this stage, sign their document, and submit it to their employer. In this case, you’ll receive a default tax withholding. If your situation is more complicated, it is highly recommended that you continue with the form and add more relevant details to it.

Step 2: Account for multiple jobs

If you have a second job or are filing jointly with a spouse who has a job, you need to note this information in the next section of the form.

There are three options you can choose from depending on your situation:

• The easiest option to calculate the amount your employer should withhold from a paycheck is to use the Tax Withholding Estimator on the IRS website. If you receive self-employment income, this method is especially advisable, as the service takes into account both income and self-employment taxes.
• Another option is to fill out the Multiple Jobs Worksheet. You can use this method whether you have several jobs yourself or both you and your spouse are employed. This and previous options are suitable when you don’t want to disclose any additional financial information to your employer.
• If you get similar pay from all of your jobs (or if your spouse earns a similar amount to you), you can simply check the box, and an employer will withhold at a default level. This method may lead to a refund check, so we advise against it.

Step 3: Claim all dependents

In the next section, you need to mention how many dependents and children under 17 you have. This way, your employer will know how much to reduce withholding to allow for children.

Note that only one person in a couple is allowed to receive children-related tax benefits, and it’s best to apply for these in the W-4 form of a person with the higher-paying job.

Step 4: Add any relevant adjustments

In the next section, you can account for other qualifying deductions and any additional income you receive. An employee who wants to itemize their deductions can also use a separate worksheet added to the W-4 Form.

Another thing you can do in this section is claim an exemption from withholding if it’s relevant in your case. All you have to do is write “Exempt” in the corresponding field below Step 4 of your W-4 Form.

Step 5: Sign and put a date

The filled-out form becomes valid once you sign and date it. Once this is done, you can submit it to your employer.

If your situation seems too complicated, you can turn to professionals so they can review your return and help you correct any potential mistakes.

When Do You Need to Fill Out a W-4 Form?

While most people fill out Form W-4 when they get a new job, it is recommended to update it in some other situations as well. Here are the main cases when such adjustments are necessary:

• Marriage or divorce.

A change in filing status always impacts your tax withholding, whether you plan to file jointly after you get married or get a divorce and are now a single filer.

• Changes in a number of depends.

If you now have more dependents in your household (birth of a child, adoption, etc.), you should renew your W-4 Form to ensure your tax burden is appropriately reduced. Also, keep in mind that when your child turns 17, they are no longer qualified as a dependent.

• Multiple jobs.

If you find another job or your spouse starts working, you have to indicate this in the W-4 form. Otherwise, you may be under-withheld a significant amount if you use standard deduction.

• Any income not related to your wage.

Another reason to adjust your W-4 Form is if you start earning income from sources other than your primary job. Withholding should be adjusted to any new income you get from stock dividends, side jobs, etc.

• Upcoming expenses.

If you are buying a house or are making a charitable donation, you should renew your W-4 Form. There are different types of credits for education, buying a house for the first time, and healthcare expenses, so you need to take them into account.

You should make changes to your form once your situation changes, and there is no need to wait for any specific date. It is best to make adjustments as soon as possible, as if you wait until the end of the year, the applied changes will have less influence on the taxes for that year.