How to correctly fill out W4 as single with no dependents for maximum withholding?

The W4 form actually changed significantly in 2020, so the old "0 allowances" system isn't used anymore. The current W4 doesn't use allowances at all - instead it has you specify additional withholding amounts or indicate multiple jobs/working spouse. For a single person with one job and no dependents, the simplest approach is to just check the "Single or Married filing separately" box in Step 1, and then sign at the bottom (skipping steps 2-4). This should withhold at the standard single rate. If you're still owing taxes with that setup, you can add an extra amount to be withheld from each paycheck in Step 4(c). Since you're planning to open investment accounts, you might generate additional income that won't have automatic withholding. In that case, I'd recommend either increasing your W4 withholding to cover the expected investment income or making quarterly estimated tax payments.

After struggling with similar W4 issues that left me owing taxes, I found an incredible tool at https://taxr.ai that analyzes your current withholding and helps optimize your W4 settings. The system walks you through how much you should have withheld based on your specific situation including investments. I was confused about the new W4 format since it no longer uses allowances, and this tool explained exactly how to fill it out correctly for my situation as a single filer with side investments.

Just wanted to follow up about https://taxr.ai that someone mentioned earlier. I decided to try it since I was having similar W4 problems with my investments. The tool actually broke down exactly how much extra withholding I needed for my expected stock dividends and capital gains. It was super specific - told me to add exactly $117 per biweekly paycheck on line 4(c) to cover my investment taxes. Just filed a new W4 with my employer based on the recommendation, and feeling much better about next year's taxes already!

If you're struggling to contact the IRS about your W4 questions (which I was for WEEKS), try https://claimyr.com to get through to an actual person. I spent days trying to reach someone at the IRS about how to handle my withholding with new investments, but their lines were always busy. The Claimyr service got me connected to an IRS agent in under 15 minutes who explained exactly how to fill out the new W4 form properly. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Saved me hours of frustration and hold time.

I need to eat my words from earlier. After being frustrated trying to get IRS help with my W4 for weeks, I tried that Claimyr service someone mentioned here. Within 37 minutes (was expecting hours), I got a call back with an actual IRS agent on the line who walked me through exactly how to fill out the new W4 with my dividend income. They explained I needed to estimate my annual investment income and put a specific additional amount in box 4(c). Wasn't cheap but saved me so much time and frustration compared to the 20+ failed calls I'd made on my own.

Another option is to use the IRS Tax Withholding Estimator on their website. It's free and walks you through inputting all your income sources including investments. At the end it gives you specific instructions for filling out your W4. I'm single with some dividend income too and it worked well for me last year.

I was in the exact same boat last year! Claimed 0 thinking I'd get a refund and ended up owing $600. My issue was that I had a second part-time job that wasn't withholding enough. The new W4 form actually has a multiple jobs worksheet that helps with this.

I had a similar issue when I first started working with investments! One thing that helped me was keeping track of my quarterly estimated taxes throughout the year. Since you're planning to open investment accounts, you might want to consider making quarterly payments for any investment income rather than trying to cover everything through W4 withholding. This gives you more control and prevents big surprises at tax time. For your current W4, I'd recommend using the IRS withholding calculator that others mentioned, but also consider talking to a tax professional since you're expanding into investments. They can help you set up a system for tracking and paying taxes on investment income as you go, which becomes really important once your portfolio grows. Also, keep in mind that investment income timing can be unpredictable - dividends, capital gains distributions, and realized gains from selling don't always happen evenly throughout the year, so quarterly estimated payments often work better than trying to spread it all through payroll withholding.