When starting a new job there is a lot to do! From completing tons of paperwork to figuring out where the coffee pot is stationed, it can be a little overwhelming. Here are some steps to take away the nerves of filling out your W-4 form.  

What is a W-4 Form?

The W-4 form is an IRS document that tells your employer how much of your paycheck should be withheld for federal income tax. It is important to fill this form out correctly to avoid overpaying throughout the year or owing a large amount of taxes during tax season.

Step 1: Fill in Your Personal Information

In the first step, you will fill in your personal information, like your legal name, social security number, and address. Plus, you will need to mark how you are filing your taxes. The first and last step is required to complete, but it is smart to fill out the rest of the document to avoid a large tax bill in the future.

Step 2: Other Sources of Income

This section tells the employer whether they should allot more or less of your income to taxes. Filling out this section is important when filing jointly with your spouse if they have their own income or if you have a second job. When you are completing the Multiple Jobs Worksheet because you are filing jointly with your spouse, it should only be completed by the spouse with the higher-paying job for the most accurate withholding.     

Step 3: Claim Dependents

For this step, you will need to estimate how many credits you will receive for dependents, such as children. This will help you reduce your withholding.  

Step 4: Additional Withholdings

If you have any additional income that does not come from a job or self-employment and is does not have tax withheld, add it to this section. By doing this, you will increase your withholding to make sure you don’t get surprised with a large tax charge during tax season.   

Step 5: Sign & Date

Finally, you must sign and date the document.

With these steps, your W-4 form should be all set. Even if you make a mistake the first time, you can always have a do-over. If you made a mistake on the form or had a life changing event, like having a baby, you can revise it. Before filing your taxes, click here to review what discounts you can get as a Velocity Community member.  

Sources: H&R Block, The Balance