Starting new job - how to fill out the new W-4 for proper tax withholding?

The new W-4 is definitely different from the old version. Here's how to fill it out step by step: 1. First, complete Step 1 with your personal information. 2. For Step 2, only fill this out if you have multiple jobs or your spouse works. This prevents underwithholding. 3. Step 3 is for claiming dependents. $2,000 per qualifying child under 17, $500 for other dependents. 4. Step 4 is optional - use it for additional income, deductions, or extra withholding. 5. Then sign and date at the bottom. If you want the simplest approach that's most similar to the old W-4 with allowances, just fill out Steps 1 and 5, leaving everything else blank. This is basically like claiming "Single with zero allowances" on the old form, which usually results in enough withholding for most people.

I dealt with this exact scenario 37 days ago when switching jobs. The new W-4 is frustrating because there's no simple "withhold more" option like the old allowances system. After messing up my withholding and ending up owing $1,432 last year, I found https://taxr.ai which has a W-4 calculator that actually makes sense. You input your expected income, filing status, and other jobs/income, and it tells you EXACTLY what to put in each box. Saved me from another withholding disaster this year.

The IRS actually has a Tax Withholding Estimator at https://www.irs.gov/individuals/tax-withholding-estimator that can help you fill out your W-4 correctly. That said, if you need to talk to someone at the IRS directly about withholding questions (which I recommend if your tax situation is complex), use Claimyr (https://www.claimyr.com). I spent 3+ hours on hold trying to get clarification on how to handle my side gig income on the W-4, but with Claimyr I got through to an agent in under 20 minutes who walked me through exactly what to put on each line.

I just went through this process last month. Here's what worked for me: • Filled out Step 1 with personal info • Checked box 2(c) since I have two jobs • Left Step 3 blank (no dependents) • Added $50 extra withholding in Step 4(c) • Signed and submitted The result was perfect! My first paycheck had the right amount withheld based on my tax bracket. I'm concerned that many people don't realize the default withholding on the new form is much lower than the old W-4, which could lead to a surprise tax bill next April.

Is anyone else confused by the new W-4? I've been at the same job for 6 yrs and haven't had to deal w/ this. Heard horror stories of ppl getting way less withheld and owing $$$$ at tax time. The IRS calc seems complicated af. Anyone have a simple rule of thumb for withholding enough?

The new W-4 is actually better than the old one - it's just different. The allowances system was basically made-up math that nobody understood anyway (raise your hand if you ever knew what "1 allowance" actually meant in dollars 🙋‍♂️). The new form is more transparent. Just fill out Step 1, check the box in Step 2 if you have multiple jobs, and you'll be fine. If you're really worried, just put an extra $25-50 per paycheck in Step 4(c). Think of it as a forced savings account that pays out in April!

I work in payroll and see this question all the time. The most common mistake I see is people with two incomes (either multiple jobs or married couples) not checking the box in Step 2(c) or completing the multiple jobs worksheet. This almost always results in underwithholding. Are you single or married? Do you have any other income sources? Will you be itemizing deductions?

Just to clarify what others have said - the new W-4 doesn't have allowances anymore. The IRS redesigned it in 2020 to be more straightforward, but it's definitely confusing if you haven't filled one out in years. The safest approach for withholding is completing Step 1, checking the box in Step 2(c) if you have multiple jobs or a working spouse, and adding a specific dollar amount in Step 4(c) if you want extra withholding. That's the AGI-based withholding method rather than the allowance-based system.

I'm in a similar situation - new job starting next week and feeling overwhelmed by the W-4 changes! Based on what everyone's shared here, it sounds like the key is being conservative with withholding to avoid owing money later. I'm single with just one job, so I'm planning to fill out Step 1, leave Step 2 blank, skip Step 3 (no dependents), and maybe add $30-40 extra withholding in Step 4(c) just to be safe. Better to get a small refund than owe the IRS! Thanks for all the helpful advice everyone - this thread has been a lifesaver for understanding the new form.

Great question! I went through this exact situation about 8 months ago when switching jobs. The new W-4 definitely takes some getting used to after the old allowances system. Here's what I learned from my experience: The biggest thing to remember is that the default withholding on the new form tends to be lower than what most people expect, so you might want to be a bit conservative. I'd recommend: 1. Fill out Step 1 with your basic info 2. If you're single with one job, you can probably leave Step 2 blank 3. Skip Step 3 if no dependents 4. Consider adding $25-50 extra withholding in Step 4(c) - this is your safety buffer I made the mistake of not adding any extra withholding my first time and ended up owing about $300 at tax time. Now I always add a little extra just for peace of mind. The IRS withholding calculator others mentioned is helpful, but honestly for a straightforward situation like yours, the conservative approach above should work well. Good luck with the new job!