Form W-4
paycheckAlso known as: W-4, Employee Withholding Certificate
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
New W-4 (2020+): Step 1 (filing status), Step 2 (multiple jobs / spouse works), Step 3 (claim dependents), Step 4 (other adjustments — extra income, deductions, additional withholding). The IRS Tax Withholding Estimator (irs.gov/W4App) helps you calculate accurate withholding. Submit a new W-4 to your employer when life changes occur (marriage, divorce, new child, second job). Under-withholding triggers underpayment penalty if you owe >$1,000 at filing; safe harbor is 100% of prior year tax (110% for high earners) or 90% of current-year tax. Most filers should aim for $0 refund / $0 owed.
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Related paycheck terms
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