IRS Form W-4 is the employee form for calculating and declaring the amount of federal income tax that should be withheld from each paycheck. Withholding amounts are calculated based on a couple of factors outlined in the form.
If employees have multiple jobs or are married filing jointly with a spouse who also works, they may take one of the following actions in Step 2:
- visit the IRS calculator website.
- complete page 3 of the W-4 worksheet.
- check the box if you work two jobs with similar pay.
Employees can claim dependents in Step 3 (if their income qualifies):
- those filing individually making less than $200,000 annually.
- those filing jointly making less than a combined $400,000 annually.
- for questions on what qualifies as a dependent, the IRS recommends this website.
If you have any additional income to claim, you can do so in Step 4:
- extra income (not from jobs).
- deductions (not the Standard deduction) using the worksheet on page 3 of the W-4 worksheet.
- extra withholding.