How to Fill Out W-4 Tax Withholding Form in 2022

How to Fill Out W-4 Tax Withholding Form in 2022

W-4 is a form issued by the Internal Revenue Services (IRS), and employees use it to tell employers the amount of tax to withhold from each paycheck. Previously known as “Employee’s Withholding Certificate,” all employers use the W-4 form extensively to remit taxes on behalf of the employees to the IRS. However, some changes were introduced in 2020, which are essential to note.

The W-4 form needs to be filled out if you switch jobs and have a new employer. You also need to fill it out if you want to adjust your current withholdings. However, if you already have an existing W-4 form with the current employer, you need not fill it out again.

Filling the W-4 Tax Withholding Form for 2022

The W-4 form holds considerable power to make your taxation journey better and save money. Here is a look at what it is used for and how to fill it:

Why Should You Fill out a Form W-4?

For most, it is essential to fill out Form W-4 for 2022 to avoid being slammed with a large tax bill or a giant refund while filing tax returns in 2023. Saving on colossal tax bills could enable a more productive and profitable investment of the same money or invest in other essential expenses during the year by simply filling out a W-4 form.

Although it is not mandatory to update your withholdings every year, the IRS strongly recommends revisiting the W-4 form each year to add in any extra allowances.

What Changed in the Form W-4?

Here are some of the critical changes in effect for the new and updated Form W-4:

Name of the form

Form W-4 was initially known as ‘Employee’s Withholding Allowance Certificate. However, Form W-4 no longer calculated allowances from 2020, which led the title of W-4 to be shortened to ‘Employee’s Withholding Certificate.’

Personal allowances worksheet

A taxpayer could initially lower their federal income tax through W-4 by factoring in personal exemptions. Their exemptions allowed for deductions against a taxpayer’s income, reducing their taxable income. These exemptions were tied to allowances. As personal exemptions are now gone, there is no need to determine the number of allowances.

Personal Allowance Worksheet from page ‘3’ of the old W-4 form is eliminated.

How to fill out a W-4 form

You can access the W-4 form through the IRS website. Here is a step-by-step guide into how to fill out the W-4 form:

Step 1: Enter personal information


This section requires you to enter details about your basic information such as:

  • Name
  • Address
  • Social security number
  • City/town, state
  • ZIP code
  • Filing status

Step 2: Multiple jobs

This step is useful for people who have multiple jobs or are married, filing jointly, or people whose spouses are also working.

It is also an essential and useful part for people whose financial situations depict withholding more or less than the standard amount. For example, some of the factors recorded here are income from freelancing contracts, a second job, or a spouse’s income.

Step 3: Claim dependents

Your eligibility for the child tax credit gets determined through this section. Taxpayers with a total income of $2,00,000 or less will be eligible for the tax credit. If the taxpayers are married and filing jointly, this limit is increased to $4,00,000. In that case, you can simply mention how many kids and dependents you have and multiply them by credit.

Step 4: Adjusting the holdings

This is an optional section that helps you to indicate other reasons to withhold more or less from your paycheck. Some of the parts that are included here are:

Other income (not from jobs): This could be dividend or retirement income, basically any income that may not be subject to withholding.

Deductions: Itemised deductions like charitable contributions or mortgage interest includes items that will exceed your standard deduction.

Extra withholding: Any extra withholding you want to withhold each pay period.

There could be several reasons to refine your withholdings and reflect the adjustments in the W-4.

Step 5: Signature


Signing the form is very important as it will render it invalid if the sign is missing.

Should you fill out Form W-4?

Whether you should or not fill out the Form W-4 depends on answering a few questions, like:

  • Are you married or single? If married, does your spouse work?
  • Do you or your spouse have a second job?
  • Do you have any new dependents?
  • Is there a chance that you won’t use the standard deduction?
  • Did you get a large tax bill or have a large refund last year?

If the answer is ‘Yes’ to any of the above questions, it is good to revisit Form W-4 and fill in the crucial details.At AOTAX, we have helped Indian IT pros file tax returns in the US for over 15 plus years. By generating your Tax Returns for you, we can relieve you of this stress in a cost-effective manner. To start filing your 2021 tax returns, click here.

New W-4: Adjusting Your Tax Withholding Just Changed

New W-4: Adjusting Your Tax Withholding Just Changed

New W-4: Adjusting Your Tax Withholding Just Changed

The IRS has recently introduced a new Form W-4. Due to this new Form, adjusting your withheld taxes from your paycheck would take a bit longer than usual. The only group that will not be affected by this form is taxpayers who are married and filing jointly.

Form W-4‘s format is long and essentially gets rids of a few allowances that the IRS earlier allowed for you and your family members. The form now asks for even more accurate information, which might even force you to take a look at the previous year’s tax return. It is in line with the Tax Laws that President Trump brought into effect in 2018.

As a taxpayer, it is essential that you get your withheld taxes correct. If you withhold a bit too much, you will impact liquidity or the salary that you take home. And if it is a bit too less, you will owe taxes to the IRS by the end of the year.

Who Needs The W-4?

The new form does not apply to workers unless there is a change in their tax status form the previous year. If your tax status remains the samefrom the last year, you don’t have to file the new W-4 Form. However, new employees and the ones who have had experienced a major life event such as getting married or giving birth to a child must file Form W-4.

The form is also applicable for taxpayers who aren’t too happy about their 2019 taxes. Whether you owe taxes of Uncle Sam or got smaller than expected refund, you must file W-4. Though it might seem a bit complicated, it actually simplifies the process that existed earlier.

 Benefits For Married Couples

Married couples are one of the demographics, that benefit the most from the newly introduced form. As long as both the individuals follow some instructions, the new Form is relatively easier for married couples.Married couples now merely must check a box in the returns. This box indicates that both of them are working and the amount of withheld taxes will be calculated based on that. This process is way simpler than the earlier one, where one had to follow a lengthy worksheet with nine steps to determine how much taxes should a couple withhold from their paychecks.

Though this process is simpler, there is a catch in Steps 3 and 4. Should a couple select the working box, the higher earning spouse must fill out Steps 3 and 4. These ask the taxpayers details about dependents, deductions, any additional withholdings and an additional source of income.The previous step is essential in more than a few ways. Since it plays a crucial role in deciding the taxes that are withheld. If both individually fill additional income Step 4, the amount of taxes withheld from the paychecks will be considerably higher. Similarly, a couple decides to fill in details for dependents or deductions individually, the taxes withheld will be lower. Though it might sound attractive at first, you might end up with a hefty tax bill at the end of the tax season.

Ensure No Surprises

Since it is a new Form, filing it up diligently will ensure that you don’t have to encounter any surprises. One of the easiest ways is to keep the details of the previous year handy. Details such as other sources of income, deductions that you had claimed and tax credits that you received for dependents.

Spending a few minutes to understand and fill the form will ensure that you are neither overdoing or underdoing your withheld taxes.