How to Fill Out a W4: All 5 Steps and What Each One Changes
How to fill out a W4 in 2026, step by step, with how much federal tax each choice withholds from a $60,000 paycheck and where allowances still exist.
By the PayCalculatorUSA.com team
How to fill out a W4: pick your filing status in Step 1, sign in Step 5, and use Steps 2 through 4 only if they apply to you. Form W-4 tells your employer how much federal income tax to take out of each paycheck, and since 2020 it has five steps and no allowances. Step 2 covers whether you have more than one job, Step 3 claims credits for dependents, and Step 4 adds any other income or deductions. Most people only need Step 1 and Step 5.
Each choice moves your withholding in dollars, and the effect is easy to see. For a single filer earning $60,000, paid every two weeks, a plain W-4 withholds $193.08 of federal tax a paycheck. The examples below start from that number. You can try your own in the paycheck calculator, which follows the same IRS method.
How much federal tax should be withheld?
Enough to cover your federal income tax for the year, without much extra. If withholding is too low, you owe at tax time and may face a penalty. Too high, and you get a refund of money you could have had all year.
A W-4 that matches your real situation gets you close for wage income. Your employer feeds it into the percentage method in IRS Publication 15-T, which is built from the same brackets and standard deduction you use on your return. The FAQ on how much federal tax should be withheld covers the rule of thumb in more detail.
Step 1: Personal information and filing status
Enter your name, address and Social Security number, then check one filing status:
- Single or married filing separately
- Married filing jointly or qualifying surviving spouse
- Head of household
Filing status sets which standard deduction and which brackets the withholding tables use. On the $60,000 salary:
| Filing status on W-4 | Federal withholding per paycheck |
|---|---|
| Single | $193.08 |
| Married filing jointly | $109.23 |
Married filing jointly withholds less because the tables assume a $32,200 standard deduction and wider brackets. That is right for a one-income couple. If both spouses work, Step 2 matters.
Step 2: Multiple jobs or spouse works
Fill this in if you have more than one job at a time, or you are married filing jointly and your spouse also works. You have three options:
- Use the IRS Tax Withholding Estimator and enter its result in Step 4(c).
- Fill out the Multiple Jobs Worksheet that comes with the form.
- Check the box in Step 2(c) on the W-4 for every job.
The checkbox is the simplest. It tells each employer to use half the standard deduction and brackets half as wide, on the theory that your other job uses the other half. On the $60,000 single example, checking it raises federal withholding from $193.08 to $337.88 a paycheck. That works well when the two jobs pay about the same. When they don’t, the estimator or worksheet is more accurate.
Step 3: Claim dependents and other credits
If your income is $200,000 or less ($400,000 married filing jointly), you can claim:
- $2,200 for each qualifying child under 17
- $500 for each other dependent
Add them up and enter the total. Your employer spreads that credit across the year’s paychecks. One child under 17 on the $60,000 single example drops withholding from $193.08 to $108.46 a check, which is $2,200 divided by 26 paychecks.
Step 4: Other adjustments
Step 4 is optional, and it is where you fine-tune.
Step 4(a), other income. Enter income that has no withholding, such as interest or dividends, if you’d rather pay the tax through your paycheck than by estimated payments. It raises withholding.
Step 4(b), deductions. Enter deductions you expect beyond the standard deduction. The 2026 form’s Deductions Worksheet now includes the new federal deductions for qualified tips, qualified overtime, car loan interest and seniors 65 and older, along with itemized deductions. It lowers withholding. Entering $5,000 here on the $60,000 example cuts federal withholding from $193.08 to $170.00 a check. The tips and overtime guide walks through those new lines.
Step 4(c), extra withholding. Enter any extra dollar amount to take out of each paycheck. It goes straight on top. An extra $50 makes the example $243.08 a check.
The 2026 form also adds a checkbox below Step 4(c) to claim exemption from withholding, which used to be done by writing “Exempt” on the form. Only claim it if you owed no federal income tax last year and expect to owe none this year.
Step 5: Sign and date
An unsigned W-4 isn’t valid. Hand it to your employer, not the IRS.
Summary: how each W-4 choice moves withholding
| W-4 entry | Federal withholding per paycheck | Change |
|---|---|---|
| Single, nothing else | $193.08 | |
| Married filing jointly | $109.23 | $83.85 less |
| One child in Step 3 | $108.46 | $84.62 less |
| $5,000 in Step 4(b) | $170.00 | $23.08 less |
| $50 in Step 4(c) | $243.08 | $50.00 more |
| Step 2 box checked | $337.88 | $144.80 more |
All rows are a $60,000 salary paid every two weeks, with only that one change made. FICA is $176.54 a check in every row, because the W-4 has no effect on Social Security or Medicare.
Where did allowances go?
The federal W-4 dropped withholding allowances in 2020. Before then, each allowance knocked a fixed amount off the wages your employer taxed. The current form uses dollar amounts instead: credits in Step 3 and deductions in Step 4(b).
If you have not given your employer a new W-4 since 2019, your old one with allowances is still valid. Publication 15-T keeps a separate method for those older forms. You only move to the new form when you submit a new one.
Allowances are still alive on some state forms. California’s DE 4 and Illinois’ IL-W-4 both use them, and many states let you use the federal W-4 instead. Each state page lists its own form and what an allowance is worth. Start at the states list, or see the California and Illinois pages. The FAQs on what a withholding allowance is and how many allowances to claim cover the state side.
When to update your W-4
Life changes are the usual trigger: marriage or divorce, a new baby, a child turning 17, a second job, a spouse starting or stopping work, a big change in pay, or a large refund or bill last spring. After you submit a new form, check the next pay stub to be sure the change landed. If your take-home pay moved and you did not expect it, the guide on why your paycheck went down has a checklist.
The official form and instructions are on the IRS About Form W-4 page. For what the W-4 changes on a full paycheck, read how to calculate take-home pay, and see the Form W-4 and federal income tax withholding glossary entries.
Frequently asked questions
How often can I change my W-4?
As often as you like. Give your employer a new form and it applies the change to future paychecks, usually within a pay period or two. Nothing is fixed until you file your tax return.
Do I have to fill out a new W-4 every year?
No. Your last W-4 stays in effect until you replace it. The exception is a W-4 that claims exemption from withholding, which only lasts for the calendar year and has to be renewed.
Should I check the Step 2 box if my spouse works?
Check it on both of your W-4s if you have two jobs between you that pay roughly the same. If the pay is very different, the IRS Tax Withholding Estimator or the Multiple Jobs Worksheet gives a closer result than the checkbox.