Form W-4– Employee’s Withholding Allowance 2021 is the form employees fill out to provide information about their taxes and income to their employer. It is for tax purposes to provide the necessary information the employer will use when figuring out tax withholding.
Without Form W-4, the employer wouldn’t know about the employee’s anticipated tax return. This will result in the employer withholding tax counting the employee as single with nothing on tax return other than the standard deduction. What this means–in the end–is the employer will withhold more tax than needed.
Since withholding too much tax is just as bad as withholding less tax, all employees should fill out Form W-4. For 2021, Form W-4 hasn’t gone under any changes. It is pretty much the same. If this is your first time filing Form W-4 after a long break due to change of employers or something else, you may need the instructions.
Allowances are removed
First and foremost, the allowances on Form W-4 are removed by the IRS. They are long gone if that’s what you’re looking for. Instead of claiming allowances, you now enter the information asked from you. On 2021 Form W-4, you will need to enter information about the following.
- Personal Information
- Filing Status
- Multiple jobs if you hold any
- Anticipated tax deductions and credits
- Other income you want to withhold tax
- Extra withholding
All and all, filing Form W-4 shouldn’t take more than 10 minutes of your time. It is good to note that you should provide the most correct information on Form W-4. If what you entered on Form W-4 isn’t right, the taxes withheld may be more or less. Here is how you can file Form W-4 for the 2021 taxes.
2021 Form W-4 Printable
Form W-4 PDF can be obtained from the IRS website. This is the blank PDF and useful if you’re going to furnish your employer in the workplace. Given you won’t send any copy of it to the IRS, it can’t be filed electronically—because there is no need to.
Note: The below Form W-4 is for current use. The IRS will update it in the upcoming months.
July 27 update: The IRS released the draft version of Form W-4 as of now. The Employee’s Withholding Certificate remains the same as it is and will be in use starting from January 1, 2021.
Preview and download Form W-4 printable below.
The above Form W-4 is also online fillable. So you can fill out online and e-mail it to your employer or the payroll department. The only problem you may be faced with is signing it on your computer. To sign not just tax forms but any other document on your computer, you must have an e-signature. Learn how to sign documents electronically.
What is taxes withheld?
The Internal Revenue Service requires employers to withhold tax from their employee’s income when processing payroll. This is to pay for their federal income taxes. This is actually how you pay your federal income tax for the majority part. Unless the taxes withheld is less than what you owe, this is how you pay all of your income tax.
Related Article: Tax Withholding Estimator
The taxes withheld refers to the amount withheld from your income to pay for your federal income tax. At the end of the tax year, if the taxes withheld is more than what’s owed, the IRS will refund the excess amount.
On the other hand, withholding less tax than needed is just as bad as withholding way more tax than necessary. Since you’re going to pay your income taxes one way or another, it is best to pay it gradually at a rate where you don’t owe taxes but also don’t overpay too much.