How to Fill Out a W-4 (Without Wrecking Your Tax Withholding)
If you’ve ever stared at a W-4 and wondered whether you’re doing it right, you’re not alone. The IRS revised this form a few years ago — and let’s just say it hasn’t exactly gotten simpler. On top of that, tax laws keep changing, but the form and the payroll tables often don’t update much.
The result? We’ve seen a big spike in people under-withholding their taxes, which means more folks getting hit with surprise tax bills in April. The good news is, with a few smart moves, you can make your W-4 work for you.
Step 1: Start With the Basics
The first section is the easy part. Fill in your name, Social Security number, and current address. Then, when it asks for your filing status, check either “Single” or “Married filing separately.”
Even if you’re married filing jointly, checking one of these higher-withholding options helps build in a little buffer — which can prevent you from owing a big chunk at tax time.
Step 2: Skip the Rest (For Now)
Here’s where most people get tripped up: Steps 3 and 4 on the form.
For most taxpayers, the simplest and safest move is to enter “0” across the board — that means:
Step 3: Dependents → 0
Step 4(a): Other income → 0 (unless you know the amount and want to include it)
Step 4(b): Deductions → 0
Step 4(c): Extra withholding → 0 (or add a flat amount if you prefer a larger refund)
Why so many zeros? Because over-complicating these sections without fully understanding how they affect withholding is one of the biggest reasons people end up under-withholding. We see this all the time with new tax clients, and it’s one of the first things we help them adjust.
Step 3: Adjust for Multiple Jobs (If Needed)
If you work more than one job — or if you and your spouse both work — you can add income from other jobs in Step 4(a). This increases the amount withheld from each paycheck to account for your total household income.
It’s not an exact science, and it might still need adjusting later, but it’s a good starting point for preventing under-withholding across multiple income sources.
Step 4: Add Extra Withholding (Optional)
If you love a big refund at tax time, or just want a little extra cushion, Step 4(c) is where you can do that. Enter a flat amount — for example, an extra $50 per paycheck — and that amount will be withheld in addition to what’s already calculated.
Step 5: Review and Adjust If Needed
After you’ve submitted your updated W-4, you should schedule a tax planning session with your tax accountant.
If you’re already a Personal Financial Services client, you can just send us your pay stub from your first paycheck with the new withholding. If you have more than one job, we’ll need stubs from all of them to get the full picture. From there, we can calculate whether your withholding is on track or if adjustments would help you meet your goals — whether that’s a large refund or breaking even as closely as possible.
If you’re not already a PFS client, we do offer one-time tax strategy sessions to cover issues like this and more.
No More Tax-Time Surprises
The W-4 might not be the easiest form on the planet, but filling it out carefully is one of the best ways to avoid a nasty surprise in April. And you don’t have to figure it out alone — we’re here to walk through your situation, calculate the right withholding, and help you plan ahead.
If you’d like a professional set of eyes on your W-4 or help fine-tuning your withholding strategy, get in touch with our team. We’ll make sure you’re set up for a smoother tax season!