Every employee in the United States must fill out IRS Form W-4 (Employee’s Withholding Certificate) when starting a new job — and should revisit it whenever their financial situation changes. This form tells your employer how much federal income tax to withhold from each paycheck.
Getting your W-4 right is a balancing act: withhold too little and you’ll owe the IRS at tax time (possibly with penalties); withhold too much and you’re giving the government an interest-free loan all year.
This guide walks you through every line of the 2026 Form W-4, explains the changes that affect withholding this year, and shows you how to optimize your paycheck.
Quick Summary
Before we go step by step, here are the key facts:
- Who fills it out: All employees (not independent contractors — they use W-9)
- When to fill it out: New job, life changes, or anytime you want to adjust withholding
- Where to submit: Give to your employer — never sent to the IRS
- Time to complete: 5–10 minutes for most people; 15–20 minutes for complex situations
- Cost: Free
- 2026 changes: Updated tax brackets, new standard deduction ($15,000 single / $30,000 MFJ), SALT cap changes, new qualified tips/overtime deductions may affect withholding choices
What’s New for 2026
The 2026 W-4 reflects several changes from the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, and updated IRS withholding tables:
| Change | Impact on Your W-4 |
|---|---|
| Standard deduction increased | $15,000 (single) / $30,000 (married filing jointly) — slightly more take-home pay if you use the standard deduction |
| Updated tax brackets | Bracket thresholds adjusted for inflation, affecting the amount withheld at each income level |
| New tips deduction (2025–2028) | If you earn qualified tips, up to $25,000 may be deductible — consider adjusting Step 4(b) |
| New overtime deduction (2025–2028) | Premium portion of overtime pay (up to $12,500) may be deductible — consider adjusting Step 4(b) |
| SALT deduction cap raised to $40,000 | If you itemize and pay significant state/local taxes, this affects Step 4(b) deductions |
| Social Security wage base: $184,500 | Higher earners may see Social Security tax withheld on more wages |
| IRS Tax Withholding Estimator updated | The IRS estimator tool now reflects 2026 rules |
Important: The IRS updated its withholding page on February 13, 2026 to account for 2025 tax law changes. If you haven’t reviewed your W-4 since before July 2025, now is a good time to do so.
Understanding How Tax Withholding Works
Before filling out the form, it helps to understand what’s happening behind the scenes.
The Withholding System
- You submit Form W-4 to your employer
- Your employer uses it (along with IRS Publication 15-T) to calculate how much federal tax to withhold from each paycheck
- Throughout the year, your employer sends those withheld amounts to the IRS on your behalf
- At tax time, you file Form 1040 and compare what was withheld (shown on your W-2, Box 2) to your actual tax liability
- The difference becomes either a refund (overpaid) or a balance due (underpaid)
The Goal
Your goal with the W-4 is to match withholding as closely as possible to your actual tax liability. The IRS recommends aiming for a small refund or a small amount owed — ideally within $100 of break-even.
Who Needs to Fill Out Form W-4
You Must Fill Out W-4 If You:
- Start a new job — your employer cannot pay you without a completed W-4
- Start a second job — multiple income sources change your withholding needs
- Experience a life change — marriage, divorce, birth of a child, home purchase
- Owed taxes last year — you may need to increase withholding
- Got a large refund — you may want to reduce withholding for larger paychecks
- Experienced income changes — raise, bonus structure change, or side income
You Don’t Need W-4 If You’re:
- An independent contractor (use Form W-9 instead)
- Self-employed with no employer (use Form 1040-ES for estimated tax payments)
- A retiree receiving pension payments (use Form W-4P instead)
Step-by-Step Instructions
The 2026 Form W-4 has five steps. Steps 1 and 5 are required for everyone. Steps 2, 3, and 4 are optional — but completing the relevant ones ensures more accurate withholding.
Step 1: Personal Information (Required)
This section collects your basic information:
(a) Your Name and Address
Enter your legal first name, middle initial, and last name — exactly as it appears on your Social Security card.
Enter your current mailing address (street, city, state, ZIP code).
(b) Social Security Number
Enter your 9-digit SSN. Your employer needs this to report your wages and withholding to the IRS.
(c) Filing Status
Check one box:
| Filing Status | When to Choose |
|---|---|
| Single or Married filing separately | You’re unmarried, divorced, or married but filing a separate return |
| Married filing jointly | You’re married and filing a joint return with your spouse (most common for married couples) |
| Head of household | You’re unmarried, paid more than half the cost of keeping up a home, and have a qualifying dependent |
Why it matters: Your filing status directly determines:
- The standard deduction used in withholding calculations
- Which tax bracket table your employer uses
- The overall amount withheld from each paycheck
Common mistake: Choosing “Single” when you qualify for “Head of household.” Head of household gives you a larger standard deduction and more favorable tax brackets, which means lower withholding and a bigger paycheck.
Step 2: Multiple Jobs or Spouse Works (Optional)
Complete this step only if:
- You hold two or more jobs at the same time, OR
- You’re married filing jointly and your spouse also works
Why this matters: The standard withholding tables assume you have only one job. Without Step 2, each employer withholds as if that job is your only income — which underestimates your total tax liability. You’ll end up owing at tax time.
Option A: IRS Tax Withholding Estimator (Most Accurate)
Use the IRS Tax Withholding Estimator for the most precise calculation. You’ll need:
- Your most recent pay stub(s)
- Your spouse’s most recent pay stub (if applicable)
- Estimated income from other sources
- Most recent tax return (for reference)
The estimator tells you exactly what to enter on your W-4.
Option B: Multiple Jobs Worksheet (Page 3)
Use the worksheet on page 3 of Form W-4 if you prefer not to use the online estimator. This involves looking up values in the IRS tables based on your wages.
Option C: Checkbox (Simplest — But Only for Two Similar-Paying Jobs)
Check the box in Step 2(c) if:
- You have exactly two jobs (or married filing jointly with two total jobs), AND
- Both jobs pay roughly similar amounts
If you check this box, both you and your spouse must check it on your respective W-4s.
Warning: Option C is the least accurate method. It works well when two salaries are close (e.g., $50,000 and $55,000), but produces poor results when salaries differ significantly (e.g., $80,000 and $25,000). In that case, use Option A or B.
Step 3: Claim Dependents (Optional)
This step reduces your withholding based on tax credits you expect to claim.
Child Tax Credit
Enter the number of qualifying children under age 17 and multiply by the credit amount:
- $2,500 per child for 2026 (increased from $2,000 under the OBBBA)
- Child must be under 17 at end of the tax year
- Child must have a valid SSN
- Child must live with you for more than half the year
Example: 2 qualifying children × $2,500 = $5,000 on line 3
Other Dependents
Enter the number of other dependents (children 17+, elderly parents, etc.) and multiply by $500 per dependent.
Total
Add both amounts and enter the total on line 3.
Important: If your income exceeds $200,000 (single) or $400,000 (married filing jointly), the child tax credit begins to phase out. Reduce the amount you claim accordingly or use the IRS estimator for precision.
Step 4: Other Adjustments (Optional)
This step lets you fine-tune your withholding for situations beyond basic wages.
(a) Other Income
Enter income you expect to receive that isn’t from jobs — and that you don’t want to make separate estimated tax payments for:
- Interest and dividends
- Retirement income
- Capital gains
- Rental income
- Side gig income (1099 work)
Do NOT include: Social Security benefits, tax-exempt interest, or income from self-employment for which you make quarterly estimated payments.
Example: You expect $3,000 in dividend income → enter $3,000 on line 4(a). Your employer will withhold extra from each paycheck to cover the tax on that income.
(b) Deductions
If you plan to itemize deductions (or claim certain above-the-line deductions) instead of taking the standard deduction, this line reduces your withholding.
Use the Deductions Worksheet on page 3 of Form W-4:
- Start with your estimated itemized deductions:
- State and local taxes (SALT, capped at $40,000 for 2026)
- Mortgage interest
- Charitable contributions
- Medical expenses exceeding 7.5% of AGI
- Subtract the standard deduction for your filing status ($15,000 single / $30,000 MFJ)
- Add any above-the-line deductions (student loan interest, IRA contributions, etc.)
- 2026 Bonus: Add qualified tips deduction (up to $25,000) and/or qualified overtime deduction (up to $12,500) if applicable
- Enter the result on line 4(b)
Example: You itemize $45,000 in deductions, your standard deduction is $30,000, and you qualify for $8,000 in overtime deduction → enter $23,000 on line 4(b). This tells your employer to withhold less because you’ll have more deductions than the standard amount.
(c) Extra Withholding
Enter a fixed dollar amount to withhold from each paycheck in addition to the calculated amount.
When to use this:
- You consistently owe taxes at filing time
- You have income not covered by Step 4(a)
- You want a larger refund
- You’re being cautious after a big life change
Example: Enter $50 to have an extra $50 withheld per pay period. Over 26 biweekly pay periods, that’s $1,300 extra withheld for the year.
Step 5: Sign and Date (Required)
Sign and date the form. The W-4 is not valid without your signature.
Important: By signing, you certify under penalty of perjury that the information is correct. However, the IRS cannot penalize you for filling out the W-4 “wrong” — the penalty applies only to deliberately fraudulent claims.
Scenarios and Examples
Scenario 1: Single, One Job, No Dependents
The simplest case. A recent college graduate starting their first job at $55,000/year.
| Step | Action |
|---|---|
| Step 1 | Enter name, SSN, check “Single” |
| Step 2 | Skip (one job only) |
| Step 3 | Skip (no dependents) |
| Step 4 | Skip (no other adjustments needed) |
| Step 5 | Sign and date |
Result: The standard withholding tables handle everything. This person will get a small refund or owe a small amount.
Scenario 2: Married, Both Spouses Work, Two Children
A married couple — one earns $85,000, the other earns $52,000 — with two children under 17.
| Step | Action |
|---|---|
| Step 1 | Enter name, SSN, check “Married filing jointly” |
| Step 2 | Use IRS estimator (Option A) — salaries differ too much for the checkbox |
| Step 3 | 2 children × $2,500 = $5,000. Enter on line 3 (only on ONE spouse’s W-4) |
| Step 4 | Skip unless itemizing or expecting other income |
| Step 5 | Sign and date |
Important: Only one spouse should claim dependents in Step 3. If both do, you’ll underwithhold.
Scenario 3: Single, Two Jobs
A person earning $60,000 at their primary job and $20,000 at a part-time job.
| Step | Action |
|---|---|
| Step 1 | Enter name, SSN, check “Single” — on BOTH W-4s |
| Step 2 | Use IRS estimator (recommended) or the worksheet. Do NOT just check the checkbox — salaries aren’t similar |
| Step 3 | Skip (no dependents) |
| Step 4 | If estimator suggests extra withholding, enter on 4(c) of the higher-paying job’s W-4 |
| Step 5 | Sign and date |
Tip: Generally, it’s best to put all adjustments on the W-4 for the higher-paying job and submit a basic W-4 for the lower-paying job.
Scenario 4: Head of Household with Overtime and Tips
A single parent who is a restaurant server earning $35,000 in wages plus $18,000 in tips and $4,000 in overtime premium pay, with one child under 17.
| Step | Action |
|---|---|
| Step 1 | Enter name, SSN, check “Head of household” |
| Step 2 | Skip (one job) |
| Step 3 | 1 child × $2,500 = $2,500. Enter on line 3 |
| Step 4(b) | Deductions worksheet: $18,000 qualified tips + $4,000 overtime − (standard deduction difference) = additional deductions. Enter the result |
| Step 5 | Sign and date |
2026 advantage: The new tips and overtime deductions under OBBBA effectively reduce this person’s taxable income, which means less withholding needed.
Common Mistakes to Avoid
Mistake 1: Not Updating After Life Changes
Problem: Filing as “Single” after getting married, or not claiming a new child.
Fix: Submit a new W-4 within 10 days of any life event that changes your filing status or dependents.
Mistake 2: Both Spouses Claiming Dependents
Problem: Each spouse enters the full child tax credit on their W-4, doubling the reduction.
Fix: Only ONE spouse should complete Step 3. The other spouse’s Step 3 should be blank.
Mistake 3: Ignoring Step 2 With Multiple Jobs
Problem: Each employer withholds as if they’re your only employer, leading to significant under-withholding.
Fix: Always complete Step 2 if you have multiple jobs or your spouse works. The IRS estimator gives the most accurate result.
Mistake 4: Claiming Exempt When You’re Not
Problem: Writing “Exempt” on line 4(c) when you actually will owe federal taxes.
Fix: You can only claim exempt if you had no federal tax liability last year AND expect no liability this year. If you earn over roughly $14,600 (2026 single standard deduction + personal threshold), you almost certainly owe taxes.
Mistake 5: Confusing W-4 With W-9
Problem: Filling out a W-4 for freelance/contract work, or a W-9 for employment.
Fix: W-4 is for employees. W-9 is for independent contractors. If you’re unsure of your classification, check IRS guidelines or consult a tax professional.
W-4 vs. Other Tax Forms
| Aspect | W-4 | W-9 | W-2 |
|---|---|---|---|
| For | Employees | Independent contractors | Employees (year-end) |
| Purpose | Set tax withholding | Provide TIN to clients | Report wages and taxes |
| Given to | Your employer | Your client | Given to you by employer |
| Sent to IRS | No | No | Yes (by employer) |
| When | Start of job or life changes | Start of contract | January of following year |
| Affects | How much tax is withheld per paycheck | Whether client withholds backup taxes | Your tax return filing |
How to Claim Exempt Status
You may claim exempt from federal withholding if both conditions apply:
- You had no federal income tax liability in the prior year (2025)
- You expect no federal income tax liability in the current year (2026)
How to claim:
- Complete Step 1 (name, SSN, filing status)
- Write “Exempt” on the line below Step 4(c)
- Sign and date in Step 5
- Do NOT complete Steps 2, 3, or 4
Important rules for exempt status:
- Exempt status expires every February 15
- You must submit a new W-4 each year to maintain exempt status
- If your employer doesn’t receive a new W-4 by Feb 15, they’ll begin withholding as “Single” with no adjustments
- Students, part-time workers, and very low earners are the most common people who legitimately qualify
When to Revisit Your W-4
The IRS recommends checking your withholding at least once per year and after any of these events:
| Life Event | W-4 Action |
|---|---|
| Got married | Change filing status to “Married filing jointly”; coordinate with spouse on Step 2 |
| Got divorced | Change filing status; update dependents in Step 3 |
| Had a baby | Add $2,500 to Step 3 for child tax credit |
| Child turned 17 | Reduce Step 3 (no longer qualifies for $2,500 credit; may qualify for $500 other dependent credit) |
| Bought a home | May want to add mortgage interest in Step 4(b) if itemizing |
| Started a side job | Complete Step 2 or add income to Step 4(a) |
| Spouse started or stopped working | Redo Step 2 accordingly |
| Received a large refund | Reduce withholding — less in Step 4(c) or more in Step 4(b) |
| Owed taxes at filing | Increase withholding — add to Step 4(c) |
| Started earning tips | Consider new tips deduction in Step 4(b) |
| Earning significant overtime | Consider new overtime deduction in Step 4(b) |
Using the IRS Tax Withholding Estimator
The IRS Tax Withholding Estimator is the most accurate way to fill out your W-4. Here’s how to use it:
What You’ll Need
- Most recent pay stubs (yours and spouse’s)
- Most recent income tax return (Form 1040)
- Estimated other income for the year (investments, rental, etc.)
- Estimated deductions (if itemizing)
What It Does
- Calculates your expected total tax liability for 2026
- Compares it to what’s been withheld so far
- Tells you exactly what to enter on a new W-4 to get close to break-even
When to Use It
- After any life change listed above
- At the beginning of each year
- Midyear if your income changes significantly
- If you’re unsure whether to use the checkbox, worksheet, or estimator in Step 2
Frequently Asked Questions
Can my employer refuse my W-4?
No. Your employer must accept any W-4 you submit. However, if the IRS notifies your employer that your withholding is insufficient (a “lock-in letter”), your employer must follow the IRS’s instructions instead.
What happens if I don’t submit a W-4?
Your employer will withhold at the highest rate — as if you’re single with no adjustments. You’ll likely get a large refund, but your paychecks will be smaller than necessary.
Can I change my W-4 at any time?
Yes. You can submit a new W-4 to your employer whenever you want. There’s no limit on how many times you can change it. Most employers process the change within 1–2 pay periods.
Does my old W-4 (pre-2020) still work?
If you submitted a W-4 before 2020 and haven’t changed jobs or submitted a new one, your employer is still using the old form’s allowances system. It still works, but the IRS recommends updating to the current version for more accurate withholding.
Will my employer know my total income from all jobs?
No. Your W-4 doesn’t reveal income from other jobs. Steps 2–4 adjust your withholding without exposing private financial details to your employer. The checkbox in Step 2(c) simply tells payroll to use a different withholding table — it doesn’t specify income amounts.
Can I fill out W-4 online?
Yes. Many employers offer electronic W-4 submission through their HR/payroll systems. You can also fill out the PDF form and submit it to your HR department. Use our free online W-4 tool to fill it out and print or download.
How does the W-4 affect my state taxes?
Form W-4 is for federal income tax only. Most states have their own withholding form (e.g., California DE 4, New York IT-2104). Some states piggyback off the federal W-4. Check with your employer or state tax authority.
What if I have both W-2 and 1099 income?
Use Step 4(a) to account for your 1099 income, or make separate quarterly estimated payments using Form 1040-ES. The IRS estimator can help you decide which approach works better.
Security and Privacy
Your W-4 Contains Sensitive Information
- Social Security Number
- Name and address
- Filing status and financial details
Best Practices
- Submit W-4 directly to your employer’s HR or payroll department
- Use your employer’s secure online portal if available
- Never email an unencrypted W-4
- Keep a copy for your personal records
- Shred old W-4 copies when no longer needed
Before You Submit: Checklist
Verify these items before handing your W-4 to your employer:
- Legal name matches your Social Security card
- Social Security Number is correct (all 9 digits)
- Correct filing status is checked (only one box)
- Step 2 completed if you have multiple jobs or spouse works
- Step 3 correctly calculates dependent credits (claimed on only one spouse’s W-4)
- Step 4(a) includes other non-job income if applicable
- Step 4(b) reflects additional deductions if itemizing
- Step 4(c) has extra withholding amount if desired
- Form is signed and dated
- Kept a personal copy for your records
Related Forms and Resources
Understanding your W-4 connects to these related tax forms:
- Form W-2 — Your year-end Wage and Tax Statement (shows what was actually withheld based on your W-4)
- Form 1040 — U.S. Individual Income Tax Return (where you reconcile withholding vs. tax owed)
- Form W-9 — For independent contractors (not employees)
- Form W-4P — Withholding Certificate for Pension or Annuity Payments
- IRS Publication 15-T — Federal Income Tax Withholding Methods (the tables your employer uses)
- IRS Tax Withholding Estimator — Free online tool for precise W-4 calculations
Conclusion
Filling out Form W-4 correctly ensures the right amount of federal income tax is withheld from your paycheck — no more, no less. Here’s the quick version:
- Step 1 — Enter your name, SSN, and filing status (required)
- Step 2 — Account for multiple jobs or a working spouse
- Step 3 — Claim tax credits for dependents ($2,500/child for 2026)
- Step 4 — Adjust for other income, extra deductions, or additional withholding
- Step 5 — Sign and date (required)
For 2026, pay special attention to the new tips and overtime deductions under the OBBBA — they may reduce the amount you need withheld. Use the IRS Tax Withholding Estimator for the most accurate results.
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Last updated: February 14, 2026 Reviewed by Sarah Mitchell, Tax Documentation Specialist Based on IRS Form W-4 and withholding guidance updated September 2025 for tax law changes.
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