Form W-4, Employee’s Withholding Certificate is used by employees to provide information to their employers on how much needs to be withheld from their income. Since employers are required to withhold tax from an employee’s salary and wage, this is the only way for the employee to let this happen at the correct rate.
In order, Form W-4 for 2021 tax year includes the following information:
- Personal Information such as name, address, Social Security Number
- Multiple Jobs and/or Spouse Works
- Anticipated Tax Credits such as child tax credit and dependent care credit
- Anticipated Tax Deduction
- Income outside of jobs that wanted to be subject to withholding
- Extra withholding
The above will determine the employee’s tax withholding for the most part along with the salary and pay frequency.
If you’re an employee, upon filling out a paper Form W-4 and handing it to your employer, the tax withholding based on it will begin in your next paycheck. Your employer will use the information provided on your Form W-4 with the tax withholding tables to determine the tax withholding amount.
If you’re unhappy with how much tax is being withheld, whether it be more or less than what you expected, you can always file a new Form W-4 to adjust taxes withheld. Form W-4 printable is available at the bottom of this article. Keep in mind that if the information you entered on Form W-4 is correct, the taxes withheld will be at a rate where you don’t owe to the IRS but withhold excessively.
With that said, by entering the correct information, you’re withholding tax at the right rate. For 2021, there haven’t been any changes on Form W-4 so if you filed one last year, there shouldn’t be an issue with the instructions to file. In case you need instructions though, get it from the link below. You can also obtain Form W-4 in printable, fillable and electronic versions for free.
Instructions and Printable Form W-4 (PDF)