How to Fill Out the 2025 W-4: Step-by-Step Guide with Real Examples

Disclaimer: Informational only, not tax, legal, or financial advice. Rules and rates can change; check current IRS/state guidance or consult a professional.

Calculate Your Take-Home Pay

Paycheck Calculator (US)
Free • No account • Works offline

GET IT ON Google Play DOWNLOAD ON THE App Store

Quick Answer: How do I fill out the 2025 Form W-4 so my withholding matches my tax situation?

Confirm your personal details in Step 1, choose the correct filing status, and only complete Steps 2-4 if they apply. Use the IRS Tax Withholding Estimator or the form's worksheets to reflect multiple jobs, dependents, deductions, or other income, then sign Step 5. Revisit the form anytime your household income, credits, or side earnings change.

Key Takeaways

Form W-4 tells your employer how much federal income tax to withhold; Social Security and Medicare withholding follow separate rules.
Steps 2-4 are optional but critical for households with multiple jobs, dependents, extra deductions, or non-wage income, and accuracy improves when you use the IRS Tax Withholding Estimator.
Step 3 lets qualifying filers subtract $2,000 per child under 17 and $500 per other dependent (up to $200,000 income, or $400,000 if married filing jointly).
Claiming "Exempt" requires zero federal tax liability last year and expected this year, and the 2025 form must be renewed by February 17, 2026.

What the W-4 Controls (and What It Doesn't)

The 2025 Form W-4, the Employee's Withholding Certificate, directs your employer to hold back the right amount of federal income tax from each paycheck. If you withhold too little you may face a tax bill (and possibly a penalty), while too much means a larger refund next spring. The form links directly to the current IRS instructions and should always be read alongside the latest PDF issued by the agency.

What the W-4 cannot change is Social Security and Medicare (FICA) withholding. Those payroll taxes follow separate wage bases and formulas, so checking new boxes on a W-4 will not reduce FICA even if your income tax withholding drops. Employers translate your submitted form into dollars using the annual wage-bracket or percentage methods in Publication 15-T.

Layout of the 2025 Form W-4

The 2025 revision keeps the five-step structure introduced in recent years. Only Step 1 and Step 5 are required; Steps 2 through 4 are completed when they apply to your situation. Page 3 of the form includes worksheets that feed into Step 4, and the IRS points filers to the online estimator for the most accurate results.

Step 1: Personal information and filing status (Single or Married filing separately, Married filing jointly or Qualifying surviving spouse, or Head of household).
Step 2: Multiple jobs or a working spouse. Choose only one option: the IRS Tax Withholding Estimator, the Multiple Jobs Worksheet, or the Two-Jobs checkbox.
Step 3: Claim dependents and other credits if your income is within the income thresholds.
Step 4: Optional adjustments for other income, extra deductions, and additional withholding per paycheck.
Step 5: Signature and date. No withholding changes take effect until you sign.

Step 1: Personal Info and Filing Status

Verify your name, address, Social Security number, and filing status exactly as they will appear on your Form 1040. The filing status you choose here determines which standard deduction amount and tax brackets your employer will use when applying the Pub. 15-T tables to your wages.

Married couples filing jointly can have either spouse submit the form with the correct status, but the highest-paying job usually produces the most accurate withholding. If your legal name differs from the one on your Social Security card, correct that with the Social Security Administration before submitting the new W-4.

Step 2: Choose the Right Multiple-Jobs Option

Step 2 applies when you have more than one job at the same time or if you are married filing jointly and your spouse works. You must choose exactly one option on the 2025 form.

Option (a): IRS Tax Withholding Estimator. The form calls this the most accurate path. Gather pay stubs, plug in each job (and other income), and transfer the suggested withholding adjustments to the appropriate boxes.
Option (b): Multiple Jobs Worksheet. Available on page 3, this is best for two or three jobs when wages differ. Line 4 divides the annual adjustment by pay periods so you can enter the per-pay amount in Step 4(c). The worksheet instructs you to use Publication 505 tables or the Estimator when more than one job pays above $120,000 or you juggle more than three jobs.
Option (c): Two-Jobs checkbox. Check this box on both W-4s when there are only two jobs with roughly similar pay. It splits the standard deduction and tax brackets between the jobs. If one job pays much more than the other, this option can over-withhold.

Only complete Steps 3 and 4(b) on one W-4 when you or your spouse hold multiple jobs; typically that is the form submitted to the higher-paying job. This prevents doubling credits or deduction adjustments across the household.

Step 3: Claim Dependents and Other Credits

Step 3 reduces withholding when your household qualifies for certain credits and your income stays under the form's thresholds. For 2025, the instructions say to enter $2,000 for each qualifying child under age 17 and $500 for other dependents if your total income is $200,000 or less (or $400,000 or less if married filing jointly). Add other credits you want considered, such as education credits, and total the amount.

Only the W-4 submitted for the highest-paying job should claim dependents when there are multiple jobs. Review the dependency rules in IRS Publication 501 if you are unsure who counts; claiming Step 3 amounts without eligibility can cause a tax bill in April.

Step 4: Account for Other Income, Deductions, or Extra Withholding

Step 4 lets you fine-tune withholding to match taxable events beyond wages. Each line stands alone, so you can fill in one, two, or all three.

Step 4(a) Other income: Enter interest, dividends, retirement income, or other non-wage amounts you want covered by paycheck withholding instead of quarterly estimates. If you prefer making estimated payments, leave this line blank and use Form 1040-ES.
Step 4(b) Deductions: Use the Deductions Worksheet on page 3 to estimate itemized deductions and eligible adjustments that exceed the standard deduction. Enter the result here so withholding reflects your lower expected taxable income.
Step 4(c) Extra withholding: Enter a flat dollar amount to withhold each pay period. This is where you carry the per-pay figure from the Multiple Jobs Worksheet or add a cushion for bonuses, commissions, or uneven income.

Revisit the IRS Tax Withholding Estimator after major changes. It incorporates year-to-date withholding and can suggest a Step 4(c) amount to stay on track for tax time.

Step 5, Exempt Status, and When to Update Your W-4

Sign and date in Step 5 to put your elections in force. Without a signature, employers must ignore the changes and continue using your prior W-4 on file. If you qualify to claim "Exempt" from withholding, write "Exempt" in the space below Step 4(c) and complete only Steps 1(a), 1(b), and 5. You can only do this if you had no federal income tax liability last year and expect none in 2025, and employers require a fresh exempt form by February 17, 2026.

Update your W-4 whenever life changes, such as marriage, divorce, a new child, additional jobs, large shifts in deductible expenses, or side income. The IRS repeatedly recommends rerunning the Tax Withholding Estimator mid-year so your new form reflects year-to-date withholding. Remember that most states have their own withholding certificates (for example, California's DE 4), so check local requirements after you change your federal form. Nonresident alien employees should consult Notice 1392 for additional instructions.

Examples

Single employee with one W-2 job

Step 1: Files as Single and confirms address and Social Security number.
Step 2: Skips because only one job is active.
Step 3: Leaves it blank because no dependents or credits apply.
Step 4: Uses the Deductions Worksheet to enter student-loan interest in Step 4(b) and adds a small Step 4(c) amount to cover a sporadic side hustle.
Step 5: Signs and keeps a copy of the completed form with the worksheet for records.

Married couple with two similar W-2 jobs

Step 1: Higher-earning spouse selects Married filing jointly.
Step 2: Both spouses check the Two-Jobs box because each job pays roughly the same, splitting brackets between employers.
Step 3: Completed on just one W-4 for two children under 17, totaling $4,000.
Step 4: Leaves Step 4 blank because the Step 2 adjustment already keeps withholding on target.
Step 5: Both sign their respective forms, and they note to rerun the estimator after any raise.

High-earning job plus a smaller second job

Step 1: Single filer submits the new W-4 to the higher-paying job.
Step 2: Uses the IRS Estimator to account for a $130,000 primary salary and a $30,000 side job; the suggested Step 4(c) amount goes on the main job's W-4.
Step 3: Not used because there are no dependents.
Step 4: The estimator output fills Step 4(c) on the higher-paying job only; the second employer receives a W-4 with Step 2 checked and Steps 3-4 blank.
Step 5: Signs both forms and schedules a mid-year check-in when bonuses post.

Head of household with dependents and investment income

Step 1: Claims Head of household because more than half the cost of maintaining the home is covered.
Step 2: No second job, so this step is skipped.
Step 3: Enters $4,500 for two children under 17 ($4,000) and one college-age dependent ($500).
Step 4: Adds $2,000 of expected dividend income to Step 4(a) so withholding covers the investment income and completes the Deductions Worksheet to include itemized deductions in Step 4(b).
Step 5: Signs and sets a calendar reminder to revisit the form if investment income spikes.

Frequently Asked Questions

Do I need to submit a new W-4 every year?

No. Employers continue using your most recent valid W-4 until you submit a new one. The IRS recommends updating it whenever your household income, deductions, or credits change, and those claiming exempt must renew by February 17, 2026 for the 2025 form.

Which Step 2 option should we use if our paychecks are very different?

Use the IRS Tax Withholding Estimator for the most accurate result. The Multiple Jobs Worksheet can also work, but the instructions send you to the estimator or Publication 505 when more than one job pays above $120,000 because the two-jobs checkbox can over-withhold in uneven households.

How do I handle dependents on Step 3 if my income is above the threshold?

If your total income exceeds $200,000 (or $400,000 if married filing jointly), you should leave Step 3 blank. You can still claim credits on your tax return, but the W-4 instructions say not to reduce withholding through Step 3 when above those limits.

Can I include freelance or investment income in Step 4(a)?

Yes. Step 4(a) is designed for non-wage income such as interest, dividends, retirement distributions, or sole-proprietor profit. If you would rather pay estimated taxes separately, leave Step 4(a) blank and make quarterly payments using Form 1040-ES.

Who can claim "Exempt" on the 2025 W-4?

Only filers who had zero federal income tax liability in 2024 and expect zero liability in 2025 can write "Exempt" under Step 4(c). Employers remove federal income tax withholding until the end of the year, but you must submit another exempt W-4 by February 17, 2026 or withholding reverts to the default tables.

Troubleshooting and Tips

Run the IRS Tax Withholding Estimator after any raise, bonus, or new job so Step 2 and Step 4 reflect current income and year-to-date withholding.
Avoid checking the Two-Jobs box when pay levels differ significantly; the form warns this can over-withhold.
Keep copies of completed Multiple Jobs or Deductions Worksheets in case the IRS asks how you determined Step 4 entries.
Remember that Step 4(a) is only for non-wage income; wages from a second job belong in Step 2 or on a separate W-4.
If you claim exempt, set a reminder for mid-February 2026 so your employer does not revert to default withholding.
Check whether your state requires its own withholding certificate after you change the federal form.

References

Form W-4 (2025) - Official employee instructions for Steps 1-5, worksheets, and exemption rules.
IRS: About Form W-4 - Revision history, FAQs, and links to the online estimator and guidance.
Publication 15-T (2025) - Wage-bracket and percentage methods employers use to apply your W-4 selections.
IRS Tax Withholding Estimator - Tool recommended on the W-4 for multi-job households and mid-year adjustments.
Publication 505 (2025) - Broader guidance on withholding, estimated tax, and paying quarterly.
IRS Notice 1392 - Supplemental instructions for nonresident alien employees completing Form W-4.
California Form DE 4 - Example of a state-specific withholding certificate separate from the federal W-4.