The Most Common W-4 Questions

Do you have a lot of questions related to the Tax Cuts and Job Acts due to a change in federal tax withholding, tax credits and has encouraged a new version of Form W-4?

There come certain cases in our lives when we are really confused and there are a lot of questions in our mind. The situation is certain especially when you just got married, started a new job or you have a baby. You start taking a closer look at everything around you. If you are also perplexed about the changes or anything that is related to Form W-4, you just stepped into the right place.

I have gathered some important and widely asked question related to the form. I hope you find yours.

What is Form W-4?

In simple and easy words, it is a tax form that is used by the employers to find out how much federal income tax they have to withhold from the paycheck.

What is my filing status?

The employers look at your filling statues to determine the correct tax filing requirements, standard deduction and more. You have a few options for your filing status, you can check it here.

Can I change my W-4 after starting a new job?

Of course, you can! people usually change their W-4 form when something significant happens in their lives. For example when someone gets married or have a baby.

I’m an independent contractor, do I need to submit a W-4?

If you are an independent contractor, then you don't need to file a W-4.


How many W-4 allowances should I claim?

This question is quite complicated and tricky. As every person has a different situation. Furthermore, you will have to adjust the number of allowances you claim as you proceed in your life. For example, an adolescent, it is recommended to claim zero allowance. If you get married and you have a child, you might want to consider three allowances.

What happens if I claim fewer allowances?

In general, the federal income tax withheld from your paycheck depends upon the number of allowances you hold. The fewer they are the more you have to pay.if you withhold a lot of income tax you are entitled to a tax refund.

What happens if I claim more allowances?

In general, the more allowances you claim, the less federal income tax will be withheld from your paycheck. I don't withhold enough income tax you are expected to give the government what you have. You may also be forced to pay a penalty in such a case.

Am I exempt from tax withholding?

You can be exempt from the withholding by using the W-4. By using W-4, your employers will not withhold any sort of tax from your paycheck. You can claim exempt if you don't expect to incur a tax liability for the current year, and you did not incur any tax liability in the previous year.

Do I have to fill out a new W-4 each year?

It is up to you. You don't need to fill out a new W-4 each year unless you change your job, or a life event happens as I mentioned in the above three questions. You should keep in mind that the IRS has intentions of having a new version of the W-4 in 2019.

How do I fill out my W-4?

 PaycheckCity’s W-4 Assistant will help you fill out your W-4.

How has the Tax Cuts and Jobs Act impacted my withholding?

Sometimes you receive a bigger paycheck that of you might have expected. This is due to the change in the tax code, which has changed the standard deduction rate, Child Tax Credit and the IRS is working on a new version of the W-4 in this year.

Employer Questions

If you are an employer and you also have questions in your mind regarding the Form W-4. Check the below question and I am sure you will find the answers to all of your questions.

The process of filling out the form can be difficult depending on your employee's familiarity with the Form W-4. Every employee has different experience and scenario regarding W-4. It is highly recommended to get the most accurate information related to your withholdings. The W-4 can have a huge impact on your finances, thus impacts the overall quality of your life.
Below are a few questions that might strike your mind when it comes to your employee's W-4.

When does my employee have to fill out a W-4?

All your employers have to do is to fill out another W-4 form if something significant occurs in his/her life. If your employee thinks that the current withholding is not accurate, he/she can easily fill our a new W-4 Form.

How do I help my employees with their W-4s?

There are many ways to help our your employee. The IRS provides the complete instruction to complete the form. You can also help your employee by clearing the things out for them in the W-4 form. For example, you can help them by explaining allowances, filling the status, and dependents.

What do I do when my employees want to change their allowances?

It is very easy, encourage your employees to submit another W-4 form according to the new scenario.

What do I do with my employee’s W-4 after completion?

Make sure to collect the W-4 form and keep it in a safe place after your employee completes the Form. Businesses are required to keep each employee's W-4 form for up to four years.