W-4 Frequently Asked Questions
Plain-English answers to the questions we hear most often.
Common questions
What is a W-4 form?
A W-4 is the IRS Employee's Withholding Certificate. You fill it out and give it to your employer to tell them how much federal income tax to withhold from each paycheck. It does not get sent to the IRS, your employer keeps it on file.
Do I need to fill out a new W-4 every year?
Not unless your situation changes. Your current W-4 stays in effect until you submit a new one. The exception: if you claimed exempt status, you must renew it by February 15th of each year.
What changed with the 2020 W-4 redesign?
The old form used allowances (0, 1, 2...). The new form uses dollar amounts, other income, deductions, and dependent credits. The result is more accurate withholding, but the instructions are more confusing. That's why this site exists.
Should I claim 0 or 1 on my W-4?
The modern W-4 doesn't use those numbers, but the concept applies. Leaving Step 3 blank mimics claiming 0 (maximum withholding). Adding dependents in Step 3 mimics claiming 1 or more. Our calculator gives you the exact amounts to enter.
What happens if I don't submit a W-4?
Your employer withholds as if you are Single with no adjustments, the highest rate. You won't be penalized, but your paychecks will be smaller than necessary.
Can I claim exempt on my W-4?
Only if you had zero tax liability last year AND expect zero this year. Claiming exempt otherwise means you'll owe all the tax at filing time, plus potential penalties.
My spouse and I both work, how do we fill out our W-4s?
Both of you need to complete Step 2, or at least one of you should. Without it, each employer withholds only based on their salary, and you'll likely underpay when the incomes are combined on your joint return.
I have a second job, what should I do?
Complete Step 2 on at least one of your W-4s. Simplest: check the box in Option C to withhold at the higher Single rate.
How do I accountlance income on my W-4?
Enter your estimated annual freelance net income in Step 4(a). This causes extra withholding on each day-job paycheck to cover the freelance tax. Or make quarterly estimated payments directly to the IRS.
How long does it take for a new W-4 to take effect?
Your employer must implement it within 30 days, usually the next payroll cycle. Check your following paycheck to confirm.
What is Step 2 on the W-4 for?
Step 2 adjusts withholding when you have multiple W-2 income sources, two jobs, or you and your spouse both work. Without it, each employer withholds at too low a rate.
Is my W-4 information confidential?
Yes. Your employer keeps it on file and does not submit it to the IRS. The IRS can request it during an audit, but it is not publicly accessible.