W-4 Form Settings (2020+)

Understanding the 2020+ W-4

• Step 2(c): Check if you or your spouse have multiple jobs. This uses higher withholding rates to prevent underwithholding.
• Step 3: Claim $2,000 per qualifying child under 17 and $500 for other dependents to reduce withholding.
• Step 4(a): Enter annual income from interest, dividends, retirement, or other sources not subject to withholding.
• Step 4(b): Enter deductions beyond the standard deduction if you plan to itemize (mortgage interest, charitable donations, etc.).
• Step 4(c): Request additional withholding per paycheck if you want a larger refund or need to cover other income.

FICA Tax Limits (2026)

• Social Security: 6.2% on wages up to $184,500.00 annually. Enter your year-to-date earnings to see when you hit the cap.
• Medicare: 1.45% on all wages with no cap. Additional 0.9% applies to wages over $200,000 (single) or $250,000 (married filing jointly).

Note

This calculator uses the 2020+ W-4 format which replaced allowances with a more straightforward approach. If you have an older W-4 on file, your employer uses the old method until you submit a new form. State and local taxes vary by location. FICA taxes (Social Security and Medicare) are required regardless of W-4 settings.