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Page 2 Form W-4 (2023)
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<br />General Instructions
<br />Section references are to the Internal Revenue Code.
<br />Future Developments
<br />For the latest information about developments related to
<br />Form W-4, such as legislation enacted after it was published,
<br />go to www.irs.gov/FormW4.
<br />Purpose of Form
<br />Complete Form W-4 so that your employer can withhold the
<br />correct federal income tax from your pay. If too little is
<br />withheld, you will generally owe tax when you file your tax
<br />return and may owe a penalty. If too much is withheld, you
<br />will generally be due a refund. Complete a new Form W-4
<br />when changes to your personal or financial situation would
<br />change the entries on the form. For more information on
<br />withholding and when you must furnish a new Form W-4,
<br />see Pub. 505, Tax Withholding and Estimated Tax.
<br />Exemption from withholding. You may claim exemption
<br />from withholding for 2023 if you meet both of the following
<br />conditions: you had no federal income tax liability in 2022 and you expect to have no federal income tax liability in
<br />2023. You had no federal income tax liability in 2022 if (1)
<br />your total tax on line 24 on your 2022 Form 1040 or 1040-SR
<br />is zero (or less than the sum of lines 27, 28, and 29), or (2)
<br />you were not required to file a return because your income
<br />was below the filing threshold for your correct filing status. If
<br />you claim exemption, you will have no income tax withheld
<br />from your paycheck and may owe taxes and penalties when
<br />you file your 2023 tax return. To claim exemption from
<br />withholding, certify that you meet both of the conditions
<br />above by writing “Exempt” on Form W-4 in the space below
<br />Step 4(c). Then, complete Steps 1(a), 1(b), and 5. Do not
<br />complete any other steps. You will need to submit a new
<br />Form W-4 by February 15, 2024.
<br />Your privacy. If you have concerns with Step 2(c), you may
<br />choose Step 2(b); if you have concerns with Step 4(a), you
<br />may enter an additional amount you want withheld per pay
<br />period in Step 4(c).
<br />Self-employment. Generally, you will owe both income and
<br />self-employment taxes on any self-employment income you
<br />receive separate from the wages you receive as an
<br />employee. If you want to pay income and self-employment
<br />taxes through withholding from your wages, you should
<br />enter the self-employment income on Step 4(a). Then
<br />compute your self-employment tax, divide that tax by the
<br />number of pay periods remaining in the year, and include
<br />that resulting amount per pay period on Step 4(c). You can
<br />also add half of the annual amount of self-employment tax to
<br />Step 4(b) as a deduction. To calculate self-employment tax,
<br />you generally multiply the self-employment income by
<br />14.13% (this rate is a quick way to figure your self-
<br />employment tax and equals the sum of the 12.4% social
<br />security tax and the 2.9% Medicare tax multiplied by
<br />0.9235). See Pub. 505 for more information, especially if the
<br />sum of self-employment income multiplied by 0.9235 and
<br />wages exceeds $160,200 for a given individual.
<br />Nonresident alien. If you’re a nonresident alien, see Notice
<br />1392, Supplemental Form W-4 Instructions for Nonresident
<br />Aliens, before completing this form.
<br />Specific Instructions
<br />Step 1(c). Check your anticipated filing status. This will
<br />determine the standard deduction and tax rates used to
<br />compute your withholding.
<br />Step 2. Use this step if you (1) have more than one job at the
<br />same time, or (2) are married filing jointly and you and your
<br />spouse both work.
<br />If you (and your spouse) have a total of only two jobs, you
<br />may check the box in option (c). The box must also be
<br />checked on the Form W-4 for the other job. If the box is
<br />checked, the standard deduction and tax brackets will be
<br />cut in half for each job to calculate withholding. This option
<br />is roughly accurate for jobs with similar pay; otherwise, more
<br />tax than necessary may be withheld, and this extra amount
<br />will be larger the greater the difference in pay is between the
<br />two jobs.
<br />Multiple jobs. Complete Steps 3 through 4(b) on only
<br />one Form W-4. Withholding will be most accurate if
<br />you do this on the Form W-4 for the highest paying job.
<br />Step 3. This step provides instructions for determining the
<br />amount of the child tax credit and the credit for other
<br />dependents that you may be able to claim when you file your
<br />tax return. To qualify for the child tax credit, the child must
<br />be under age 17 as of December 31, must be your
<br />dependent who generally lives with you for more than half
<br />the year, and must have the required social security number.
<br />You may be able to claim a credit for other dependents for
<br />whom a child tax credit can’t be claimed, such as an older
<br />child or a qualifying relative. For additional eligibility
<br />requirements for these credits, see Pub. 501, Dependents,
<br />Standard Deduction, and Filing Information. You can also
<br />include other tax credits for which you are eligible in this
<br />step, such as the foreign tax credit and the education tax
<br />credits. To do so, add an estimate of the amount for the year
<br />to your credits for dependents and enter the total amount in
<br />Step 3. Including these credits will increase your paycheck
<br />and reduce the amount of any refund you may receive when
<br />you file your tax return.
<br />Step 4 (optional).
<br />Step 4(a). Enter in this step the total of your other
<br />estimated income for the year, if any. You shouldn’t include
<br />income from any jobs or self-employment. If you complete
<br />Step 4(a), you likely won’t have to make estimated tax
<br />payments for that income. If you prefer to pay estimated tax
<br />rather than having tax on other income withheld from your
<br />paycheck, see Form 1040-ES, Estimated Tax for Individuals.
<br />Step 4(b). Enter in this step the amount from the
<br />Deductions Worksheet, line 5, if you expect to claim
<br />deductions other than the basic standard deduction on your
<br />2023 tax return and want to reduce your withholding to
<br />account for these deductions. This includes both itemized
<br />deductions and other deductions such as for student loan
<br />interest and IRAs.
<br />Step 4(c). Enter in this step any additional tax you want
<br />withheld from your pay each pay period, including any
<br />amounts from the Multiple Jobs Worksheet, line 4. Entering
<br />an amount here will reduce your paycheck and will either
<br />increase your refund or reduce any amount of tax that you
<br />owe.
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<br />CAUTION
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