📝W-4 Withholding Calculator
Calculate the right amount of federal tax withholding for your W-4 form. Avoid surprises at tax time.
Frequently Asked Questions
What is Form W-4?
Form W-4 tells your employer how much federal income tax to withhold from your paycheck. You fill it out when starting a new job or when your personal/financial situation changes. The form uses your filing status, number of jobs, dependents, and other factors to calculate the right withholding amount.
How many allowances should I claim?
The 2020 W-4 redesign eliminated 'allowances.' Now you report specific dollar amounts for dependents, other income, deductions, and extra withholding. Generally: claim all eligible dependents ($2,000 per child under 17), report second jobs, and adjust for itemized deductions if they exceed the standard deduction.
Should I have extra tax withheld?
Consider extra withholding if you: have self-employment income, receive investment income, got a large tax bill last year, or want a bigger refund. However, extra withholding means less money in each paycheck. It's often better to adjust withholding to break even and invest the difference yourself rather than giving the IRS an interest-free loan.
What if I claim exempt on W-4?
Claiming 'Exempt' means no federal income tax is withheld (Social Security and Medicare still are). Only claim exempt if you: had no tax liability last year AND expect none this year. Most people don't qualify. If you claim exempt incorrectly, you'll owe a large tax bill plus potential penalties when filing your return.
How do I update my W-4?
Submit a new W-4 to your employer's HR/payroll department anytime your situation changes: marriage, divorce, having a child, buying a home, starting a second job, or if your last tax return showed you owed a lot or got a large refund. Changes typically take effect within 1-2 pay periods. Update within 10 days of life changes to avoid underwithholding.