A W-4 form is an IRS tax document completed by employees and submitted to their employers. The information provided on the form helps employers determine the amount of tax to withhold from each paycheck during the year.
Before we get started, check out this super helpful blog post to understand all the W4 changes.
Breaking Down the W-4: What You Need to Know
Filing Status
This field shouldn't be unfamiliar as it was used in the old W4 as well. To answer this question, you'll want to enter the status that you use at the end of the year to file your taxes.
Options: Single, Married Filing Separately, Married Filing Jointly (or Qualifying Widow(er)), Head of Household, Exempt
Your Jobs
The verbiage on this field will change slightly depending on your filing status. Choose the answer that best fits your current situation (remember, if your situation changes you can update this field at any time).
This step applies if:
- You have more than one job at the same time.
- You’re married filing jointly, and both spouses work.
Choose one of these options to complete Step 2:
a) Use the IRS Tax Withholding Estimator for accurate withholding (recommended if you or your spouse have self-employment income).
b) Complete the Multiple Jobs Worksheet on Page 3 and enter the result in Step 4(c).
c) Check the box in Step 2(c) to indicate multiple jobs (note: this notifies your employer).
📌 Reminder: If you work multiple jobs, fill out Steps 3–4b only on one W-4 form.
Income
For this field, do your best to estimate your (or your families) total income for the filing year.
- Your income will be $200,000 or less ($400,000 if married filing jointly)
- Your income will be more than $200,000 ($400,000 if married filing jointly)
Additional Fields (may populate depending on your selections above)
Determine your eligibility for the child tax credit:
- Single taxpayers earning ≤ $200,000, or married filing jointly earning ≤ $400,000, can claim this credit.
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- *Qualified Children - how many qualified children (under the age of 17) will you claim when filing your taxes next year?
- Number of qualifying children under age 17 × $2,000.
- *Other Dependents - this does not include children under 17
- Number of other dependents × $500.
- *Claim Dependents - This is automatically calculated by GoCo, the 2 values of Qualified Children and Other Dependents are added together.
- *Qualified Children - how many qualified children (under the age of 17) will you claim when filing your taxes next year?
Other Adjustments
Use this section to account for additional factors:
- (a) Other Income: Income not subject to withholding, like dividends or retirement earnings. Enter the amount of other income here. If this doesn't apply, enter in 0.
- (b) Deductions: Itemized deductions (e.g., mortgage interest, charitable donations) that exceed the standard deduction. Use the Deductions Worksheet on page 3 and enter the result here. If this doesn't apply, enter in 0.
- (c) Extra Withholding: Add extra withholding if desired. Please note that this is a dollar amount. So, if you $50 withheld additionally from each check, enter in the value "50".
Worksheets on Form W-4
The 2025 W-4 includes two worksheets for specific scenarios:
Multiple Jobs Worksheet
Use this worksheet if you choose option b in Step 2. While less accurate than the IRS estimator, it provides more privacy.
- Line 1: Use the table on Page 4 to find the intersection of wages for your higher-paying and lower-paying jobs. Enter this amount on Line 1.
- Line 2: For three jobs, complete Lines 2a–2c using similar steps for higher-paying jobs.
- Line 3: Enter the number of pay periods per year for your highest-paying job.
- Line 4: Divide the amount from Line 1 or 2c by Line 3 and enter it in Step 4(c).
Deductions Worksheet
This worksheet is for those itemizing deductions. If your itemized deductions exceed these amounts, consider completing this section:
- Single/Married Filing Separately: $15,000
- Married Filing Jointly: $30,000
- Head of Household: $22,500
📌 Pro Tip: Use your prior-year tax return to estimate deductions.
❔FAQ:
Why should I fill out a new form?
Due to a tax reform, federal taxes will be calculated slightly different beginning the 2020 tax filing year. If you keep your old W4 values from the previous year, you could possibly owe money to the IRS when you file your 2024 taxes.
You don’t need to complete a new W-4 form every year if your employer already has one on file. However, it’s wise to review your tax withholding at least once a year or whenever significant life events occur. Changes like marriage, divorce, adding dependents, or starting a side job can impact your tax situation.
💚 If you have any additional questions, or need support, please feel free to email us at help@goco.io.