2021 Update: Good news! Nothing significant changed for workers (you!) with regards to filling out the 2021 W4.
If you’re filling out a W4 form, it likely means you have a new job or have gone through changes to your financial situation.
If the reason you’re filling it out is a new job or an addition to the family, congratulations! Don’t forget to also sign up for your job’s 401K retirement plan AND open an IRA.
Regardless of the reason why you need to fill out a 2021 W4 Form, you’ll be happy to know that the W4 has been refreshed and redesigned to make it easier than ever to fill out.
The days of wondering whether you should be claiming ‘0’ or ‘1’ are over! The W4 no longer asks about allowances.
This article will explain what the 2021 W4 is and how to fill out the 2021 W4 Form.
What Is The W4 Form And Why Was It Redesigned
The 2021 W4 Form needs to be filled out by all new employees and existing employees who want to update their withholding. The form makes sure your employer can withhold the correct amount of federal income tax from your pay.
If you are happy with your withholding and you already submitted a W4 to your employer during a previous year, you do NOT need to update the form. Only do so, if your tax situation has changed.
Having too little withheld means you’ll likely owe tax when you file your tax return and may owe a penalty. Have too much withheld and you will generally be due a refund.
The redesign eliminates allowances. This change aligns with the changes from the 2017 Tax Cuts and Jobs Act. The changes make the Form simpler to complete and easier for workers to accurately let their employer know how much tax to withhold.
Trust me, it’s a LOT easier now.
What Does the 2021 W4 Look Like & Where Can I Download It
The 2021 W4 Form consists of 4 pages, and you can download a 2021 W-4 Form Printable PDF copy here.
Page 1 consists of the actual Form itself. This is the only page that must be returned to your employer.
Page 2 includes instructions (see below).
Page 3 comprises the Multiple Jobs Worksheet and Deductions Worksheet.
Finally, Page 4 has a set of withholding tables to be used in conjunction with Page 3.
How To Fill Out A W4
Now that you have your W4 Form ready to be filled out, let’s go through each step so that you can get this over with and move on with more important things in your life, like watching reruns of Buffy The Vampire Slayer, or choosing a low-cost online financial advisor to help you save and invest your money like a pro.
The first thing that you need to know, is that the easiest way to fill out the form is to use the IRS’s withholding estimator. Their calculator works best on desktop (Mac or PC) so that you can export the completed form. I’ve had less success on mobile.
All you do is follow a sequence of steps and you can then download a pre-filled 2021 W4 Form. It’s that easy.
Now, let’s move on to the steps to filling out the form if you’d rather DIY.
Step 1: Enter your personal information.
This step is self-explanatory. The only thing that might be less straightforward is step 1c, which is where you need to select your filing status.
Your tax filing status refers to how you will file your taxes at the end of the 2021 tax year. So if you are single and don’t expect to get married this year, you’ll file taxes Single.
If you are confused about this, check your taxes from last year and see what your previous filing status was. Assuming no significant life changes occurred or are expected, you’ll likely file taxes the same way!
Step 2: Multiple Jobs or Spouse Works
The beautiful thing about steps 2 through 4 is that you ONLY need to fill them out IF they apply to you.
That means that if none of the steps apply to you, you can skip straight to Step 5 to sign and wrap things up.
Complete step 2 if you (1) hold more than one job at a time, or (2) are married filing jointly, and your spouse also works.
The easiest way to fill this step will be to use the IRS’s tax withholding estimator on a Mac or PC. Alternatively, if your household only holds two jobs in total, and both have similar pay, you can check the box for Step 2(c) and proceed to Step 3.
To use their estimator, you’ll need to make sure you have your and your spouse’s most recent pay statement and any info on other sources of income.
Once you’re done using the IRS’s estimator, you can head back here to see how to proceed.
Step 2(b): Use the Multiple Jobs Worksheet
If you prefer not to use the estimator tool or you can’t get it to work, you can use the multiple jobs worksheet. Follow the instructions on the Form and input the final result in Step 4(c) as an extra withholding.
Step 3: Claim Dependents
Like Step 1, Step 3 is also relatively simple. If your income will be $200,000 or less ($400,000 or less if married filing jointly), follow the steps listed in the Form.
As an example, let’s assume your household income will be $300,000, you will file married filing jointly, you have three kids under the age of 17, and you also support your elderly mother financially.
Under this example, your total for step 3 will be $6,500. This is because you have three qualifying children, so 3 x $2,000 = $6,000. You also have one other dependent, which gives you an additional $500. As a result, $6,000 + $500 = $6,500.
Simple enough.
Step 4: (Optional) Other Adjustments
Follow the directions for Step 4(a) if you have non-job income for which you’d like to have tax withheld.
Step 4(b)
Use the Deductions Worksheet on Page 3 if you are NOT expecting to claim the standard deduction. If you aren’t sure what this means, then you are likely going to claim the standard deduction (the vast majority of people claim the standard deduction). If you aren’t sure, you can use last year’s taxes as a guide or as your accountant.
Step 4(c) was already discussed above in Step 2(b) with regards to the Multiple Jobs Worksheet. Finally, let’s move to the final step!
Step 5: Sign Here
Step 5 is required to complete and submit your 2021 W4 Form, and you simply need to sign and date the Form.
It’s important to realize that you must complete the Form honestly and accurately since this Form is a legal tax document, and you can face penalties of perjury if you do not complete it honestly.
Don’t cheat, kids.
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*Disclaimer: The Finance Twins is a financial publisher that does not offer personal financial advice or tax advice.
Camilo is a personal finance expert and the Co-Founder and CEO of The Finance Twins. I was raised in poverty by a single mother and had to learn everything about personal finance on my own. I have been featured on Forbes, Business Insider, CNBC, and US News. Earlier in my career, I worked as an investment banking analyst on Wall Street at JPMorgan Chase & Co., and I have an M.B.A. from Harvard University and a B.S.E. in finance from the Wharton School of the University of Pennsylvania.
I used to always file 1 allowance and just got a new job. It looks like the new form doesn’t ask for an allowance. Is that right?
Yes, that’s right. No more allowances or having to claim 1 or 0!
If i want married at single higher rate with no allowances how do i fill out form?
Use this calculator to fill out the form. All you’ll have to do is print it out and sign it: https://apps.irs.gov/app/tax-withholding-estimator
I did use calculator and worksheet those numbers have me and my husband aboit 5000.00 short really dont want to owe.
If you want to have extra withheld, you can add that amount in section 4C.
This doesn’t answer the question. We want to know — how do you and your spouse fill out the form if you are having TOO much withheld and want to REDUCE it, which happens when one spouse makes much more than the other.
The form only gives an option to INCREASE to extra withholding, which makes the over-withholding problem worse. How do you DECREASE it?
Hi John, you can use step 4(B) to decrease withholding.
I used the online calculator and it tells me to add $75 in column 4c. Using the worksheet provided with w4 forms tell me to add $362 in 4c. What is wrong? Also it says on online calculator that you can download and submit but there is nothing filled out except 4c (which is $75 in my case) Is it suppose to fill out completely and why the difference between online and paper sheet numbers?
I am not sure why you’d be seeing a discrepancy there.
Actually the discrepancy is in the calculator itself and here is it. It tells me that I need to have $344 withheld every pay check and when I click on how to adjust your withholding, it tells to add $100. I just did a simulation based on my salary and fed data that I have contributed $0 dollars so far. Why it tells me I need $344 withheld and only asks me to add $100 in line 4c.
To get your desired refund amount, you will need $344 withheld from each paycheck, $344 more than your current tax withholding.
How to Adjust Your Withholding
Step 1: Complete a new Form W-4 online or via paper as follows:
•Check your personal information is correct (line 1(a) and (b) on Form W-4)
•Select Married filing jointly (or Qualifying widow(er)) filing status (line 1(c) on Form W-4)
•Enter $100 in additional withholding per pay period (Line 4 (c) on Form W-4 is already pre-filled in the Download button below)
I have a daughter that I claim on my taxes. I’m single so not married or joint anything but I always claim 0 how to I fill out to have the most taken out
Use the IRS calculator to put in all of your details. At the end you can specify how much you want to owe or get back and it will auto-populate the form for you: https://apps.irs.gov/app/tax-withholding-estimator
How do you use the IRS calculator if you started a new job? The calculator wants to know what is on your check. I tried to get by with just giving them my annual income and it requests more info from a check I haven’t received yet. Also, on the old form I claimed 9 dependents. I did this to get the minimum taken out of my check as I don’t care about getting a huge chunk of money during tax season. I would rather get it on my biweekly checks. How do I achieve this on the new W4 forms?
How do I claim myself ?
Can we still claim 0?
Not in the same way as before.
Can you please elaborate on how we might get the same desired outcome as we previously has by selecting “0”? For instance, if married filing jointly with 1 qualifying child, and put down $0.00 on step 3, with all over steps blank, take out roughly the same amount as selecting “0” in previous years?
Hi Sean, unfortunately there’s not really a good conversion from the old “0”. When they got ride of the allowances in 2019, the idea is that you would now provide estimates on federal tax withholdings. I (Francisco) recently updated my W4 and also have a qualifying child. I followed the steps in the article using the IRS tax withholding estimator (linked in the article). Children/Dependent credits are entered under step 5.
If by filing “0” you mean that you are trying to maximize your tax refund/make sure you do not owe any additional federal tax dollars at the end of the year, one could contribute additional dollars and/or not specify any credits/deductions. Any over-contributions beyond what you are liable for will get returned to you in the form a refund. It’s kind of like a loan that gets taken out each paycheck and then paid back in the form of a refund when you file your taxes if you have over paid throughout the year. Hope that helps and thanks for your engagement!
Hi my wife and me file jointly. She earn higher than me. our both W4 form should be put same info. like if i put 2 dependent( 2 under 17 child) so my wife should put same like me or not. on step 2 we should use estimator or table and select file jointly both w4 am i right.
I didn’t realize the W4 was so different now. About time…
It’s easier than ever!
Not really…hr block doesnt understand it so went to a cpa and they have no clue how to make sure we dont owe.
Use the IRS calculator. At the end it’ll say if you’ll owe or get a refund and you can decide how much or little you want that to be. It will then autocomplete the form for you: https://apps.irs.gov/app/tax-withholding-estimator
I have a question so how much percentage will be taken from paqychecks in 2020 with this new law if I claim 4500 my 2 minor kids and my mom? how is the math don?
Use this calculator: https://apps.irs.gov/app/tax-withholding-estimator
I have a question on the 2020 W4 can I claim head of household if I have a roommate and is that better than claiming single cause I have no dependents
You may be able to file as head of household if you meet all the following requirements.
1. You are unmarried or “considered unmarried” on the last day of the year.
2. You paid more than half the cost of keeping up a home for the year.
3. A “qualifying person” lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the “qualifying person” is your dependent parent, he or she does not have to live with you.
More details here: https://www.efile.com/irs-head-of-household-tax-filing-status/
Hi,
My husband makes 130k a year, and I make 40k a year. We have no children.
Question 1- do we both update our w4?
Question 2- what amount should be included on the w4 since we both file jointly?
I’m confused since I’m new to filing jointly. Thanks!
Hi Lili, if you are recently married or filing jointly for the first time then yes, you both should submit updated W4s at work. To fill out the form, just follow the steps above (or use the calculator). Good luck!
I used the multiple job earners table for myself and my spouse since we both have jobs and divided the figure from the table by the number of pay periods for the highest paying job and put the figure on line 4c. Does my spouse also need to file a new W4 since I included her income in my W4 and if so, does she mimic the same information from mine to hers? Or does she leave everything blank on her W4?
Please advise!
That’s my question also?
Hi,
In my recent check I learned that not much of my federal taxes were taken out. I filled out the W4 as single and claiming one dependent. I don’t want to owe at the end of the year. I need help on what I need to put so I can get the right amount of federal taxes taken out.
Hi Siclaly, did you use the IRS’ withholding calculator?
what percent of federal tax do I need for them to take out?
I have 2 children my son is 17 and in high school and my daughter is 19 and in college what do I claim in step 3?
Hi Marci, it sounds like you need to determine whether both of your children qualify as dependents. Here are the rules from the IRS website:
In general, to be a taxpayer’s qualifying child, a person must satisfy four tests: