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Tax filing

Yes, both of these forms start with the letter “w,” but that’s where the similarities end. The W-4 form is only valid if you sign and date it, which you’ll do on step 5. It no longer matters whether you claim 0 or 1 on your W-4 because as of 2020, allowances are no longer on the form. Once you have completed the form, verify that all information is correct, particularly your Social Security number, then sign and date the form to make it official and give it to your employer. Finding an accountant to manage your bookkeeping and file taxes is a big decision. Bella Avila is a content management specialist on the investing and taxes team at NerdWallet.

Step 2: Details of Multiple Jobs or Spousal Income

Before editing for USA TODAY Blueprint, she was the Content Director for an international media company leading the content on their suite of personal finance sites. She lives in Phoenix, AZ where you can find her rereading Harry Potter for the 100th time. Kim Porter is a writer and editor https://www.bookstime.com/articles/what-exactly-does-a-bookkeeper-do who’s been creating personal finance content since 2010. News & World Report, Fortune, NextAdvisor, Credit Karma, and more.

• Withholding matters because it directly affects the amount of money deducted from your paycheck for taxes.
• If you also receive income from other sources, such as Social Security benefits or annuities, gather those documents to evaluate your overall tax situation and make informed withholding decisions.
• A W-2, on the other hand, is a report your employer gives you by the end of January each year.
• Understanding the implications of each filing status can help you make an informed decision when completing the W-4 form.
• This is the best example of a W4 process that will guide you through each section.
• Of course, if you’ve only got 14 pay periods left in the year, you might want to withhold more now and change it in January.

Other Tax Services

• But unlike most tax forms, filling out a W4 isn’t actually that hard.
• Alternatively, you can ask them to fill the forms using the following steps.
• There have been no major changes to the document in 2025, but the IRS has made a few small adjustments to make filling it out accurately even easier than it was before.
• Don’t forget to sign and date the W-4 before turning it in to your employer.
• The first section requires your personal information, including your full name, Social Security number, and address.

Even if your caller ID says “SouthPoint,” it’s likely spoofing, which is a scam. If the answer to any of the above-mentioned questions is “yes,” then you should revisit employee’s w4 form within the year. While there are chances that no one will become an immediate expert in filling the new W4 form, but there is definitely a scope of learning here.

This guide walks you through it, because knowing how to complete a W-4 puts you in control of your money. If you haven’t updated your W-4 since these changes, you might be at risk of unexpected tax bills or larger-than-necessary refunds. The redesigned W-4 is intended to better align your withholding with your actual tax liability, so ensuring your form is current can save you from sudden financial surprises. Have the higher income spouse “married but withhold at the higher single rate” with one allowance, plus 4 allowances for each child under the age of 17. Have the lower income spouse claim “married, but withhold at the higher single rate” with 1 allowance. This should protect you in the event that the second income kicks you out of the EIC tax credit range.

Form SSA 1724 Instructions

If you don’t have a tax advisor, you can call my office and I can help you with this, but I’m going to charge you $200 to prepare your W4. I would need your most recent pay stubs and your latest tax return. Of course, if you’ve only got 14 pay periods left in the year, you might want to withhold more now and change it in January. Or you could set the rate now and just make an estimated tax payment to cover the difference. Whether you’re paid a salary or by the hour, if you are single and working full time, you’re going to check the box that says single and claim one allowance on line 5.

Adding more withheld money online 4(c) will also help reduce your tax bill. If you recently went through a major life change — like landing a new job or getting married — you’ll need to complete a new W-4 form. This federal tax document helps your employer determine the amount to withhold from your paychecks. It’s an IRS form that you fill out when you start a new job to let your employer know how much federal income tax to withhold from your paycheck. Your W-4 can be adjusted at any time and is essential in making sure you don’t underpay or overpay your taxes. If the default options don’t align with how to fill out a w4 for dummies your tax strategy, specify additional withholding amounts.

Who Must File Form W-4?

If not enough tax is withheld from your paychecks, you may owe taxes to the government. Alternatively, if more money is withheld from your paycheck than what you owe in income taxes, you may receive a tax refund. You definitely don’t want to file exempt if you’re not actually exempt, though.