How to handle 2023 W4 form changes for previous filers?

I need some advice about the 2023 W4 form changes. My husband hasn't completed a new W4 since 2018 when they still used allowances and had that whole "married but withhold at higher single rate" option. His payroll department just sent an email saying everyone needs to submit updated W4s by next month due to some IRS changes. Has anyone dealt with this transition? We're worried about messing up our withholding since last year we ended up owing about $2,100 at tax time, which was not fun. I'm especially confused about how to translate what he had before (married with 2 allowances) to the new form format that doesn't use allowances anymore. His income is around $85,000 and I make about $72,000 if that matters. Should we just both do the new W4 at the same time to make sure we're withholding correctly? I'm afraid if we don't do this right we'll either owe a ton next April or get way too much withheld throughout the year.

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19 comments

Geoff Richards

•8M

The 2020 W-4 form redesign was quite significant, and yes, many people who haven't updated their W-4 since then are now being asked to complete new forms. The old allowances system is gone, replaced with a more straightforward dollar amount adjustment system. For your situation with both spouses working and earning substantial incomes, you should definitely both complete new W-4 forms. The best approach is to use the IRS Tax Withholding Estimator tool (available on irs.gov) which will walk you through exactly what to put on each form. You'll need your most recent paystubs and last year's tax return to use it effectively. Since you owed $2,100 last year, you'll want to either check the box in Step 2(c) for higher withholding when both spouses work, or complete Step 4(c) to specify an additional amount to withhold from each paycheck. The estimator will calculate this for you based on your specific situation.

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Geoff Richards

•8M

You should only claim the children on one spouse's W-4, not both, to avoid underwithholding. Typically, it makes sense to claim them on the higher-earning spouse's form, but the IRS Withholding Estimator will actually tell you the optimal way to complete both forms. The estimator takes into account both incomes and will guide you through exactly what to put on each form, including where to claim dependents. When you get to the results page, it will show separate instructions for each spouse's W-4. Just follow those instructions exactly and you should be properly withheld for the year.

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Simon White

•8M

After wrestling with W-4 changes last year, I found a service that basically saved me from tax disaster. I kept getting confused with the new form and was worried about owing thousands at tax time. I started using https://taxr.ai to analyze my tax situation and it automatically calculated exactly what I needed to put on my W-4. I uploaded my last paystub and tax return, and it showed me precisely how to fill out the new form to get the right withholding. The best part was it explained everything in plain English - like why I needed to add extra withholding on line 4(c) because of our rental income that wasn't subject to withholding.

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Simon White

•8M

It definitely works for multiple jobs. It asks about all income sources including 1099 work like Uber, and calculates the additional withholding you need from your W-2 job to cover the self-employment taxes and income taxes on your Uber earnings. That would probably solve your $3500 surprise. For state taxes, it handles multi-state situations including NY/NJ commuters. It gives you both specific numbers to put on each line of your W-4 AND explains why those numbers are needed. It also showed me how to adjust my state withholding forms which was super helpful since state taxes weren't automatically adjusted with the federal changes.

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Hugo Kass

•8M

Just wanted to follow up - I took the plunge and tried https://taxr.ai after seeing the recommendation here. It was seriously exactly what I needed! I've been driving for Uber for 2 years and always got hit with huge tax bills. The tool showed me I needed to add exactly $187 in extra withholding each paycheck from my main job to cover the Uber income. What really helped was how it explained the self-employment tax part (the extra 15.3% I kept forgetting about). I printed out the completed W-4 it generated, submitted it to my HR last week, and they confirmed everything looks right. My next paycheck will have the adjusted withholding. So relieved to not be headed for another tax disaster next April!

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Khalil Urso

•8M

If you're struggling to get answers about your W-4 changes, good luck trying to reach the IRS directly. I spent HOURS trying to get through to them last month with questions about my withholding. Finally found https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes instead of the usual "call back another day" message. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone tree and wait on hold for you, then call you when an agent is ready. The agent was able to explain exactly how the married filing jointly withholding works now vs. the old allowances system, and confirmed I was filling out the new form correctly.

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Khalil Urso

•8M

It's not special access or anything sketchy. They use automated systems to continually redial and navigate the phone menus, something most of us don't have time to do. They basically wait on hold so you don't have to, and their system can handle hundreds of calls simultaneously. When they reach a human agent, they connect you immediately. The IRS is definitely understaffed, but there are windows during the day when calls can get through - the problem is most of us can't spend hours redialing to find those windows. Their system essentially does the persistent redialing that would work if any of us had unlimited time. Nothing about it bypasses actual IRS procedures, it just handles the frustrating part of the process.

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Brian Downey

•8M

I need to eat my words and apologize to Profile 9. I was 100% convinced Claimyr was BS, but I was desperate after my employer said I HAD to submit the new W-4 by Friday. After trying for 3 days to reach the IRS myself and getting nowhere, I reluctantly tried https://claimyr.com yesterday. I got a call back in about 35 minutes, and sure enough, it was an actual IRS representative. She walked me through the exact differences between my old 2018 W-4 with 2 allowances and what I needed to put on each line of the new form. Turns out I was doing it completely wrong on my draft form and would have had WAY too much withheld. So yeah, I was wrong. The service works exactly as advertised. Saved me hours of frustration and potentially hundreds in overwithholding each month.

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Jacinda Yu

•8M

My company did a mandatory W4 update last year and it was a mess. HR sent us all these complicated spreadsheets trying to explain the new system but nobody understood them. What ended up working for me was just using the "Tax Withholding Estimator" on the IRS website and following the steps exactly. Make sure you have these things ready before you start: - Your most recent paystubs (yours and your husband's) - Last year's tax return - Estimated income from other sources (interest, dividends, etc) It takes about 15 minutes but gives you the exact numbers to put on the form. My withholding was almost perfect last year - only owed $78 at tax time.

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Jacinda Yu

•8M

The estimator does handle bonuses, but you have to enter them correctly. There's a specific section where you can enter expected bonuses separately from your regular salary. It will then factor in that bonuses are typically withheld at the 22% supplemental rate rather than your normal withholding rate. When I used it, I had to enter my annual salary in one field and then my expected bonus in the separate bonus field. Don't combine them or it will calculate as if all your income is withheld at the same rate. That was probably the issue with other calculators you've tried.

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