Form W-4 tells your employer how much federal income tax to withhold from each paycheck. Get it right and you'll land close to zero at tax time. Get it wrong and you'll either give the IRS an interest-free loan or face a bill (and possibly a penalty) in April. The 2026 version adds lines for the new tips, overtime, senior and car-loan deductions.
Before you start
Have your most recent pay stub, your spouse's pay information if you're married, and an idea of any side income or big deductions. If your situation is complicated, run the numbers first in our W-4 calculator.
Step 1: Personal information and filing status
Enter your name, address and SSN, then choose a filing status in 1(c). This choice sets your withholding table and the standard deduction your employer builds in:
- Single or married filing separately — $16,100 standard deduction
- Married filing jointly — $32,200
- Head of household — $24,150 (unmarried and paying more than half the cost of a home for a qualifying person)
Example: on a $65,000 salary in Texas, a single filer's bi-weekly take-home is $2,092.60. As head of household with two children (Step 3), it's $2,303.06.
Step 2: Multiple jobs or spouse works
If you hold more than one job at a time, or you're married filing jointly and both spouses work, you have three options:
- Use the IRS Tax Withholding Estimator (most accurate).
- Use the Multiple Jobs Worksheet on page 3 and enter the result in Step 4(c).
- Check the box in 2(c) on the W-4 for every job. Best when the jobs pay about the same.
Checking the box halves the standard deduction and brackets for each job. For a married worker earning $65,000, bi-weekly take-home drops from $2,176.44 to $2,092.60. That's correct if a spouse earns a similar amount, because otherwise the household would be badly under-withheld.
Step 3: Claim dependents
If your income is $200,000 or less ($400,000 joint), multiply qualifying children under 17 by $2,200 and other dependents by $500, then add them up. Claim dependents on only one job's W-4, usually the highest-paying one.
Step 4: Other adjustments
4(a) Other income
Interest, dividends, retirement income or side income without withholding. Adding it here increases withholding so you don't owe later. Don't include self-employment income you'll cover with quarterly payments.
4(b) Deductions — now with the 2026 worksheet
Use the Deductions Worksheet on page 3 if you'll itemize or claim adjustments to income. The 2026 worksheet adds lines for:
- Qualified tips (up to $25,000)
- Qualified overtime compensation (up to $12,500 / $25,000 joint)
- Qualified passenger vehicle loan interest (up to $10,000)
- The senior deduction ($6,000 per person 65+)
The total goes in 4(b) and lowers your withholding. See our tips and overtime guide for the rules.
4(c) Extra withholding
Any extra amount you want withheld from each paycheck. It's the simplest fix if you owed last year: divide what you owed by the number of paychecks left this year.
Step 5: Sign and date
Sign, date and hand it to your employer (most use an online HR portal). Changes usually take effect within one or two payroll cycles.
Common W-4 mistakes
- Both spouses claiming the kids. Claim dependents on one W-4 only.
- Skipping Step 2 with two incomes. This is the most common cause of a surprise tax bill.
- Overestimating tips or overtime. If you claim more than you earn, you'll be under-withheld.
- Forgetting your state form. Many states have their own withholding certificate, such as California's DE 4 or New York's IT-2104.
- Claiming exempt when you're not. You must have had no tax liability last year and expect none this year.