A Form W-4 tells your employer how much federal income tax to withhold from each paycheck. Your employer sends that money to the Internal Revenue Service (IRS) on your behalf.
How you fill out your W-4 affects whether you:
Get a refund when you file, or
Owe taxes at the end of the year.
If you received a large refund or owed more than expected last year, it may be a good time to update your W-4.
How does my W-4 affect my paycheck?
Your federal tax withholding is based on the information you provide on your W-4, including:
Your filing status
Whether you have multiple jobs
Whether you have dependents
Any extra withholding you choose
Changing your W-4 doesn’t change how much tax you owe overall—it changes when you pay it (through your paycheck instead of at tax time).
When should I update my W-4?
You’re required to complete a W-4 when you start a new job. After that, you don’t need to update it every year—but you may want to after major life changes, such as:
Getting married or divorced
Having a child
Starting a second job or side gig
A significant change in income
How do I update my W-4?
How you update your W-4 depends on your employer.
You may be able to:
Update it electronically through your payroll system, or
Submit a paper W-4 to your employer
If you’re not sure how to make changes, your human resources team or payroll provider can help.
How do I increase my federal tax withholding?
You might increase your withholding if you want to:
Reduce the chance of owing taxes when you file, or
Get a larger refund
Prevent owing a significant amount at year-end due to insufficient withholding
Increasing withholding means more tax is taken out of each paycheck, so your take-home pay will be lower.
To increase withholding on your W-4, you can:
Claim fewer dependents for withholding purposes, or
Add an amount for extra withholding on Step 4(c)
How do I decrease my federal tax withholding?
You might decrease your withholding if you want:
A larger paycheck now, or
A smaller refund later
Decreasing withholding can increase the chance you’ll owe when you file.
To decrease withholding on your W-4, you can:
Claim more dependents, or
Adjust deductions or other income on Step 4(b)
Avoiding a tax bill at filing time
If you want to avoid surprises when you file, a little planning during the year can go a long way. Try these steps:
Take a look at how much federal tax is being withheld from your paycheck and compare it to your expected income and filing status.
Use tax estimation tools to validate your withholding against anticipated tax liability.
If something’s off, adjust your withholding by submitting a new W-4 or adding a little extra withholding each paycheck.
Check in periodically throughout the year to make sure things are still on track, especially if your income or situation changes.
Can I use my W-4 to get my tax bill close to $0?
Yes. If your goal is to break even at tax time, make sure you do the following. Taking a step-by-step approach to reviewing your withholding can help better align what’s taken out of your paycheck with what you actually owe.
Choose the correct filing status
Accurately account for dependents
Include other income, deductions, or credits
Use extra withholding if needed
There’s a worksheet for Step 4(b) that can help you estimate your deductions, including itemized deductions. You can also use online tax calculators to double-check your numbers and fine-tune your withholding based on your income, deductions, and credits.
How do I understand changes I made on my W-4?
Your W-4 doesn’t show your total withholding—it only reflects changes you’ve made.
For example:
If you add $50 of extra withholding, your federal tax withheld will increase by $50 per paycheck
Your paycheck will decrease by $50 each pay period
You can always check your pay stub to see how much federal tax has been withheld so far. It’s also a good idea to review your withholding during the year, especially if your income or personal situation changes.
If your state has income tax, it may require a separate state withholding form.
If you have questions about how your withholding shows up on your paycheck, your HR team or payroll provider is usually the best place to start.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
Any third-party links are provided for informational purposes only. The third parties and their sites are not endorsed by April and April is not responsible for, and has no control over, their content, privacy policies, or terms of service.