W-4 Form

Form W-4 (Employee’s Withholding Allowance Certificate) is used by employees to tell their employer how much federal income tax to withhold from each paycheck. Withholding depends on factors such as marital status, number of allowances/dependents, and other credits or adjustments.

Key takeaways

• Completing a W-4 determines how much federal tax your employer withholds from your pay.
• Claiming more allowances generally reduces withholding; claiming fewer increases withholding.
• You can file a new W-4 whenever your personal or financial situation changes (for example, marriage, divorce, a new child, or loss of a dependent).

How the W-4 works

The form collects basic identification information (name, address, Social Security number) and uses a worksheet to estimate allowances. Employers use the total allowances and any additional entries to calculate the tax to withhold each pay period; withheld taxes are sent to the IRS.

A taxpayer may claim exemption from withholding only if they had no federal tax liability in the prior year and expect none in the current year.

Allowances and the worksheet

The W-4 worksheet guides taxpayers through estimating allowances. Common elements include:
* One allowance if you cannot be claimed as someone else’s dependent.
* Additional allowance(s) if you are single with only one job, or married with one job and the spouse doesn’t work (or the spouse’s wages are below a set threshold).
* Allowances related to the child tax credit for eligible children (amounts depend on income and number of qualifying children).
* Allowances for other dependents (per IRS rules and income limits).
* Consideration of other credits, such as the Earned Income Tax Credit (EITC).
* A final line to total all allowances from the worksheet.

The worksheet also includes optional pages for more complex situations (for example, if you plan to itemize deductions instead of taking the standard deduction).

Important: the personal exemption was suspended for tax years 2018 through 2025 under the Tax Cuts and Jobs Act (effective Jan. 1, 2018 through Jan. 1, 2026), which can affect the number of allowances taxpayers choose.

Special considerations

• Update your W-4 whenever your tax situation changes (marriage, divorce, birth or adoption of a child, death of a dependent, significant changes in income, etc.).
• Eliminations or changes in tax law (such as the suspension of the personal exemption) can alter how many allowances make sense for your situation.
• If you are unsure how many allowances to claim, use the worksheets on the form or consult IRS guidance or a tax professional.

Sources

• Internal Revenue Service — Topic No. 753: Form W-4, Employee’s Withholding Allowance Certificate
• Internal Revenue Service — Tax Trails: Can You Claim Exemption from Withholding on Form W-4?
• Internal Revenue Service — Publication 501: Dependents, Standard Deduction, and Filing Information