Form W-4 General Instructions
Purpose of Form
Complete Form W-4 (Download Form W-4) so that your employer can withhold the correct federal income tax from your pay. If too little is withheld, you will generally owe tax when you file your tax return and may owe a penalty. If too much is withheld, you will generally be due a refund. Complete a new Form W-4 when changes to your personal or financial situation would change the entries on the form. For more information on withholding and when you must furnish a new Form W-4, see Pub. 505, Tax Withholding and Estimated Tax.
Exemption from withholding. You may claim exemption from withholding for 2024 if you meet both of the following conditions: you had no federal income tax liability in 2023 and you expect to have no federal income tax liability in 2024. You had no federal income tax liability in 2023 if (1) your total tax on line 24 on your 2023 Form 1040 or 1040-SR is zero (or less than the sum of lines 27, 28, and 29), or (2) you were not required to file a return because your income was below the filing threshold for your correct filing status. If you claim exemption, you will have no income tax withheld from your paycheck and may owe taxes and penalties when you file your 2024 tax return. To claim exemption from withholding, certify that you meet both of the conditions above by writing “Exempt” on Form W-4 in the space below Step 4(c). Then, complete Steps 1(a), 1(b), and 5. Do not complete any other steps. You will need to submit a new Form W-4 by February 15, 2025.
Your privacy. Steps 2(c) and 4(a) ask for information regarding income you received from sources other than the job associated with this Form W-4. If you have concerns with providing the information asked for in Step 2(c), you may choose Step 2(b) as an alternative; if you have concerns with providing the information asked for in Step 4(a), you may enter an additional amount you want withheld per pay period in Step 4(c) as an alternative.
When to use the estimator. Consider using the estimator at www.irs.gov/W4App if you:
- Expect to work only part of the year;
- Receive dividends, capital gains, social security, bonuses, or business income, or are subject to the Additional Medicare Tax or Net Investment Income Tax; or
- Prefer the most accurate withholding for multiple job situations.
Self-employment. Generally, you will owe both income and self-employment taxes on any self-employment income you receive separate from the wages you receive as an employee. If you want to pay these taxes through withholding from your wages, use the estimator at www.irs.gov/W4App to figure the amount to have withheld.
Self-Employment Tax Considerations.
Self-employed individuals face unique tax obligations that require careful coordination between Form W-4 adjustments and quarterly estimated payments. While the self-employment tax rate remains 15.3% (12.4% for Social Security and 2.9% for Medicare) on net earnings exceeding $400 annually, strategic use of Step 4(c) can help avoid quarterly payments through wage withholding. This approach proves particularly valuable for freelancers or gig workers with mixed income sources.
The IRS allows taxpayers to cover self-employment tax liabilities through wage withholding rather than making separate quarterly payments. To implement this strategy:
- Calculate annual self-employment tax liability using Schedule SE (Form 1040)
- Divide the total by the number of pay periods remaining in the year
- Enter the resulting amount in Step 4(c) as additional withholding
For example, a freelancer projecting $20,000 in net self-employment income would owe $2,826 in self-employment tax (15.3% of 92.35% of net earnings). With 24 remaining pay periods, they would add $118 ($2,826 ÷ 24) to Step 4(c). This method satisfies both income tax and self-employment tax obligations through regular wage withholding, eliminating the need for quarterly estimated payments.
Key advantages of this approach include:
- Avoiding underpayment penalties through consistent withholding
- Simplifying tax compliance by consolidating payments
- Maintaining cash flow predictability compared to lump-sum quarterly payments
- Automating contributions toward Social Security and Medicare benefits
The IRS Withholding Estimator incorporates self-employment tax calculations when users select the "Other Income" category and specify business income amounts. This tool automatically generates Step 4(c) values that account for both income tax and self-employment tax liabilities, ensuring proper withholding across all income streams.
Nonresident alien. If you’re a nonresident alien, see Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens, before completing this form.
Special Considerations for Nonresident Aliens
As mentioned in the Form W-4 instructions, nonresident aliens have special considerations when completing this form. These considerations are detailed in Notice 1392, but understanding the key points can help ensure proper withholding and compliance with U.S. tax laws.
Tax Treaty Benefits
Many countries have tax treaties with the United States that may reduce or eliminate withholding on certain types of income. Key treaty benefits include:
- Reduced Withholding Rates: Treaties often provide reduced tax rates for specific income types, such as scholarships, fellowships, or research grants.
- Exemptions for Students and Researchers: Full-time students, teachers, or researchers may qualify for complete exemption from withholding on specific income for a limited period.
- Cultural Exchange Visitors: Participants in exchange programs may be eligible for special tax treatment under certain treaties.
Form 8233 Requirement
If you're claiming tax treaty benefits, you must submit Form 8233 (Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual) along with your Form W-4:
- Form 8233 specifically identifies the treaty article and provisions you're claiming
- Your employer must review and accept Form 8233 before applying treaty benefits
- The form must be submitted annually to maintain treaty benefits
- The IRS reviews all Forms 8233 and may reject inappropriate claims
Residency Status Impact on Form W-4
Your residency status significantly affects how you complete Form W-4:
- Nonresident Aliens: Generally cannot claim exempt status, must write "Nonresident Alien" or "NRA" on the dotted line in Step 4(c), and must follow specific instructions for withholding allowances
- Dual-Status Aliens: Those who are both resident and nonresident aliens in the same tax year have special withholding considerations based on their status during the current pay period
- Substantial Presence Test: Understanding whether you meet this test is crucial for determining whether you complete Form W-4 as a resident or nonresident
State Tax Withholding Considerations
While Form W-4 addresses federal tax withholding, nonresident aliens should also be aware that:
- State tax treaties may differ from federal treaties
- Some states do not recognize federal tax treaty exemptions
- State withholding forms may require different information than federal Form W-4
Nonresident aliens should consult with a tax professional familiar with international tax matters to ensure proper completion of Form W-4 and any associated forms required to claim treaty benefits.
Specific Instructions
Step 1(c) Check your anticipated filing status. This will determine the standard deduction and tax rates used to compute your withholding.
Step 2 Use this step if you (1) have more than one job at the same time, or (2) are married filing jointly and you and your spouse both work. Option (a) most accurately calculates the additional tax you need to have withheld, while option (b) does so with a little less accuracy. Instead, if you (and your spouse) have a total of only two jobs, you may check the box in option (c). The box must also be checked on the Form W-4 for the other job. If the box is checked, the standard deduction and tax brackets will be cut in half for each job to calculate withholding. This option is accurate for jobs with similar pay; otherwise, more tax than necessary may be withheld, and this extra amount will be larger the greater the difference in pay is between the two jobs.
CAUTION: Multiple jobs. Complete Steps 3 through 4(b) on only one Form W-4. Withholding will be most accurate if you do this on the Form W-4 for the highest paying job.
Step 3 This step provides instructions for determining the amount of the child tax credit and the credit for other dependents that you may be able to claim when you file your tax return. To qualify for the child tax credit, the child must be under age 17 as of December 31, must be your dependent who generally lives with you for more than half the year, and must have the required social security number. You may be able to claim a credit for other dependents for whom a child tax credit can’t be claimed, such as an older child or a qualifying relative. For additional eligibility requirements for these credits, see Pub. 501, Dependents, Standard Deduction, and Filing Information. You can also include other tax credits for which you are eligible in this step, such as the foreign tax credit and the education tax credits. To do so, add an estimate of the amount for the year to your credits for dependents and enter the total amount in Step 3. Including these credits will increase your paycheck and reduce the amount of any refund you may receive when you file your tax return.
Step 4 (optional)
Step 4 (a) Enter in this step the total of your other estimated income for the year, if any. You shouldn’t include income from any jobs or self-employment. If you complete Step 4(a), you likely won’t have to make estimated tax payments for that income. If you prefer to pay estimated tax rather than having tax on other income withheld from your paycheck, see Form 1040-ES, Estimated Tax for Individuals.
Step 4 (b) Enter in this step the amount from the Deductions Worksheet, line 5, if you expect to claim deductions other than the basic standard deduction on your 2024 tax return and want to reduce your withholding to account for these deductions. This includes both itemized deductions and other deductions such as for student loan interest and IRAs.
Step 4 (c) Enter in this step any additional tax you want withheld from your pay each pay period, including any amounts from the Multiple Jobs Worksheet, line 4. Entering an amount here will reduce your paycheck and will either increase your refund or reduce any amount of tax that you owe.
Step 2(b) - Multiple Jobs Worksheet (Keep for your records.)
If you choose the option in Step 2(b) on Form W-4, complete this worksheet (which calculates the total extra tax for all jobs) on only ONE Form W-4. Withholding will be most accurate if you complete the worksheet and enter the result on the Form W-4 for the highest paying job. To be accurate, submit a new Form W-4 for all other jobs if you have not updated your withholding since 2019.
How Progressive Tax Brackets Affect Withholding in Dual-Income Households
The U.S. federal income tax system uses progressive tax brackets, meaning each portion of your income is taxed at increasingly higher rates as your earnings rise. This structure creates unique withholding challenges for households with multiple jobs that employers must account for when calculating tax deductions from paychecks.
Tax Bracket Stacking in Dual-Income Scenarios
When a taxpayer holds two jobs simultaneously, each employer withholds taxes as if that job represents the household's only income. This can result in under-withholding because neither employer accounts for the combined income that would push portions of earnings into higher tax brackets. The Multiple Jobs Worksheet tables compensate for this gap by requiring additional withholding that approximates the tax bracket "stacking" effect.
Example: $50,000 Primary Job + $30,000 Secondary Job vs. $80,000 Single Job
Consider a married couple filing jointly with these two income scenarios:
-
Single Job Scenario ($80,000 total)
- First $23,200 taxed at 10%
- Next $71,100 ($23,201-$94,300) taxed at 12%
- Total tax: $2,320 + $8,532 = $10,852
-
Dual Job Scenario ($50,000 + $30,000)
- Each employer withholds as if filing singly:
- $50,000 job withholds for 12% bracket
- $30,000 job withholds for 12% bracket
- Combined tax liability remains $10,852
- Actual withholding without adjustment:
- $50,000 job: $4,732
- $30,000 job: $3,379
- Total withheld: $8,111 ($2,741 short)
- Each employer withholds as if filing singly:
The $2,741 discrepancy occurs because both employers applied 12% rates to income portions that should be taxed at 22% when combined. The Multiple Jobs Worksheet tables calculate this difference using IRS-approved formulas, requiring extra withholding shown in the higher-paying job's table values.
2024 Married Filing Jointly Tax Brackets
Taxable Income Range | Marginal Tax Rate |
---|---|
$0 - $23,200 | 10% |
$23,201 - $94,300 | 12% |
$94,301 - $192,950 | 22% |
$192,951 - $364,200 | 24% |
This bracket structure explains why the worksheet requires progressively higher additional withholding amounts as combined incomes increase. The tables essentially estimate the "hidden" tax liability created when secondary income pushes primary job earnings into higher marginal rates. By entering the table-prescribed amount in Step 4(c), employees approximate the accurate withholding that would occur if all income came from a single source.
Note: If more than one job has annual wages of more than $120,000 or there are more than three jobs, see Pub. 505 for additional tables; or, you can use the online withholding estimator at www.irs.gov/W4App.
1. Two jobs. If you have two jobs or you’re married filing jointly and you and your spouse each have one job, find the amount from the appropriate table on page 4. Using the “Higher Paying Job” row and the “Lower Paying Job” column, find the value at the intersection of the two household salaries and enter that value on line 1. Then, skip to line 3.
2. Three jobs. If you and/or your spouse have three jobs at the same time, complete lines 2a, 2b, and 2c below. Otherwise, skip to line 3. a. Find the amount from the appropriate table on page 4 using the annual wages from the highest paying job in the “Higher Paying Job” row and the annual wages for your next highest paying job in the “Lower Paying Job” column. Find the value at the intersection of the two household salaries and enter that value on line 2a.
b. Add the annual wages of the two highest paying jobs from line 2a together and use the total as the wages in the “Higher Paying Job” row and use the annual wages for your third job in the “Lower Paying Job” column to find the amount from the appropriate table on page 4 and enter this amount on line 2b.
c. Add the amounts from lines 2a and 2b and enter the result on line 2c.
3. Enter the number of pay periods per year for the highest paying job. For example, if that job pays weekly, enter 52; if it pays every other week, enter 26; if it pays monthly, enter 12, etc.
4. Divide the annual amount on line 1 or line 2c by the number of pay periods on line 3. Enter this amount here and in Step 4(c) of Form W-4 for the highest paying job (along with any other additional amount you want withheld).
Step 4(b) - Deductions Worksheet (Keep for your records.)
1. Enter an estimate of your 2024 itemized deductions (from Schedule A (Form 1040)). Such deductions may include qualifying home mortgage interest, charitable contributions, state and local taxes (up to $10,000), and medical expenses in excess of 7.5% of your income.
2. Enter:
- $29,200 if you’re married filing jointly or a qualifying surviving spouse
- $21,900 if you’re head of household
- $14,600 if you’re single or married filing separately
3. If line 1 is greater than line 2, subtract line 2 from line 1 and enter the result here. If line 2 is greater than line 1, enter “-0-”.
4. Enter an estimate of your student loan interest, deductible IRA contributions, and certain other adjustments (from Part II of Schedule 1 (Form 1040)). See Pub. 505 for more information.
5. Add lines 3 and 4. Enter the result here and in Step 4(b) of Form W-4.
Privacy Act and Paperwork Reduction Act Notice
We ask for the information on this form to carry out the Internal Revenue laws of the United States. Internal Revenue Code sections 3402(f)(2) and 6109 and their regulations require you to provide this information; your employer uses it to determine your federal income tax withholding. Failure to provide a properly completed form will result in your being treated as a single person with no other entries on the form; providing fraudulent information may subject you to penalties. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation; to cities, states, the District of Columbia, and U.S. commonwealths and territories for use in administering their tax laws; and to the Department of Health and Human Services for use in the National Directory of New Hires. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal non-tax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by Code section 6103.
The average time and expenses required to complete and file this form will vary depending on individual circumstances. For estimated averages, see the instructions for your income tax return.
If you have suggestions for making this form simpler, we would be happy to hear from you. See the instructions for your income tax return.
Employer Responsibilities for W-4 Retention and Data Protection
Federal regulations impose specific obligations on employers handling Form W-4 data to safeguard employee privacy and ensure compliance:
-
Retention Requirements:
Employers must retain original W-4 forms for 4 years after the employment tax due date or payment date (whichever is later). This applies to both active and terminated employees. -
Storage Protocols:
- Forms may be maintained in paper or electronic format
- Electronic copies must be legible and reproducible upon IRS request
- Storage systems must prevent unauthorized access or alterations
-
Data Sharing Restrictions:
- W-4 information can only be disclosed to:
- IRS agents during audits
- State tax authorities (for tax administration purposes)
- Third-party payroll processors under confidentiality agreements
- Sharing with non-authorized parties (e.g., marketing firms) violates IRC Section 6103
- W-4 information can only be disclosed to:
-
Secure Disposal Methods:
- Paper forms must be cross-shredded or pulverized
- Electronic records require permanent deletion using DoD 5220.22-M standards
- Destruction must occur within 1 year after retention period expires
-
Penalty Exposure:
- $500 per incident for improper disclosure
- Civil penalties up to $1,000 per form for retention failures
- Criminal charges for deliberate destruction of tax records
These requirements help maintain the confidentiality of sensitive employee data while ensuring availability for official IRS reviews. Employers must implement access controls and audit trails to track W-4 handling throughout the retention period.
Married Filing Jointly or Qualifying Surviving Spouse
Higher Paying Job Annual Taxable Wage & Salary
Lower Paying Job Annual Taxable Wage & Salary | $0 - 9,999 | $10,000 - 19,999 | $20,000 - 29,999 | $30,000 - 39,999 | $40,000 - 49,999 | $50,000 - 59,999 | $60,000 - 69,999 | $70,000 - 79,999 | $80,000 - 89,999 | $90,000 - 99,999 | $100,000 - 109,999 | $110,000 - 120,000 |
---|---|---|---|---|---|---|---|---|---|---|---|---|
$0 - 9,999 | $0 | $0 | $780 | $850 | $940 | $1,020 | $1,020 | $1,020 | $1,020 | $1,020 | $1,020 | $1,370 |
$10,000 - 19,999 | 0 | 780 | 1,780 | 1,940 | 2,140 | 2,220 | 2,220 | 2,220 | 2,220 | 2,220 | 2,570 | 3,570 |
$20,000 - 29,999 | 780 | 1,780 | 2,870 | 3,140 | 3,340 | 3,420 | 3,420 | 3,420 | 3,420 | 3,770 | 4,770 | 5,770 |
$30,000 - 39,999 | 850 | 1,940 | 3,140 | 3,410 | 3,610 | 3,690 | 3,690 | 3,690 | 4,040 | 5,040 | 6,040 | 7,040 |
$40,000 - 49,999 | 940 | 2,140 | 3,340 | 3,610 | 3,810 | 3,890 | 3,890 | 4,240 | 5,240 | 6,240 | 7,240 | 8,240 |
$50,000 - 59,999 | 1,020 | 2,220 | 3,420 | 3,690 | 3,890 | 3,970 | 4,320 | 5,320 | 6,320 | 7,320 | 8,320 | 9,320 |
$60,000 - 69,999 | 1,020 | 2,220 | 3,420 | 3,690 | 3,890 | 4,320 | 5,320 | 6,320 | 7,320 | 8,320 | 9,320 | 10,320 |
$70,000 - 79,999 | 1,020 | 2,220 | 3,420 | 3,690 | 4,240 | 5,320 | 6,320 | 7,320 | 8,320 | 9,320 | 10,320 | 11,320 |
$80,000 - 99,999 | 1,020 | 2,220 | 3,620 | 4,890 | 6,090 | 7,170 | 8,170 | 9,170 | 10,170 | 11,170 | 12,170 | 13,170 |
$100,000 - 149,999 | 1,870 | 4,070 | 6,270 | 7,540 | 8,740 | 9,820 | 10,820 | 11,820 | 12,830 | 14,030 | 15,230 | 16,430 |
$150,000 - 239,999 | 1,960 | 4,360 | 6,760 | 8,230 | 9,630 | 10,910 | 12,110 | 13,310 | 14,510 | 15,710 | 16,910 | 18,110 |
$240,000 - 259,999 | 2,040 | 4,440 | 6,840 | 8,310 | 9,710 | 10,990 | 12,190 | 13,390 | 14,590 | 15,790 | 16,990 | 18,190 |
$260,000 - 279,999 | 2,040 | 4,440 | 6,840 | 8,310 | 9,710 | 10,990 | 12,190 | 13,390 | 14,590 | 15,790 | 16,990 | 18,190 |
$280,000 - 299,999 | 2,040 | 4,440 | 6,840 | 8,310 | 9,710 | 10,990 | 12,190 | 13,390 | 14,590 | 15,790 | 16,990 | 18,380 |
$300,000 - 319,999 | 2,040 | 4,440 | 6,840 | 8,310 | 9,710 | 10,990 | 12,190 | 13,390 | 14,590 | 15,980 | 17,980 | 19,980 |
$320,000 - 364,999 | 2,040 | 4,440 | 6,840 | 8,310 | 9,710 | 11,280 | 13,280 | 15,280 | 17,280 | 19,280 | 21,280 | 23,280 |
$365,000 - 524,999 | 2,720 | 6,010 | 9,510 | 12,080 | 14,580 | 16,950 | 19,250 | 21,550 | 23,850 | 26,150 | 28,450 | 30,750 |
$525,000 and over | 3,140 | 6,840 | 10,540 | 13,310 | 16,010 | 18,590 | 21,090 | 23,590 | 26,090 | 28,590 | 31,090 | 33,590 |