How to Fill in W-4s for Taxes
- 1). Complete the Personal Allowances Worksheet on the first page of Form W-4. This worksheet determines the maximum number of allowances you should claim when completing your W-4. You do not have to submit this worksheet, the Deductions and Adjustments Worksheet or the Two-Earners/Multiple Jobs Worksheet with your Form W-4, but you should keep them for your own records.
- 2). Complete the Deductions and Adjustments Worksheet, if you anticipate claiming sizable income tax deductions. For example, if you have student loan interest, a mortgage and you contribute the maximum to your traditional IRA each year, your taxable income will be lower than anticipated by the Personal Allowances Worksheet. The Deductions and Adjustments Worksheet takes into consideration these extra deductions when figuring the number of allowances you should claim for your Form W-4.
- 3). Complete the Two-Earners/Multiple Jobs Worksheet if both you and your spouse work, if you work multiple jobs or if you have other taxable income not subject to withholding, such as capital gains. When you work multiple jobs, the IRS recommends you claim all of your allowances at your most profitable job and claim zero allowances on your remaining W-4s. This worksheet figures the additional amount, if any, you need to request that your employer withhold from each paycheck.
- 4). Check the "Single" box if you expect to file a single return when you file your taxes. If you are married, select the "Married" box for more accurate withholding or the "Married, but withhold at the higher single rate" box if you want extra withheld.
- 5). Claim no more than the maximum number of allowances as figured by the greater of the Personal Allowances Worksheet or the Deductions and Adjustments Worksheet on line 5 of your Form W-4. If you would rather have too much withheld so you get a big refund at tax time, claim fewer allowances.
- 6). Report the amount, if any, of additional income tax withholding on line 6 of your Form W-4. After figuring your tax withholding based on your income, filing status and allowances, your employer will add this extra amount to the total withheld.
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