How to Fill Out Form W‑4 in 2026 (Without Messing Up Your Taxes)
Have you ever been asked to fill out a W-4 form before and had the moment of tax-existential terror - What if i fill it out incorrectly? What if the IRS sends me a notice? If I put in the wrong inputs will I owe on my return? You’re not alone. Here’s how to get it right—and avoid a surprise tax bill later.
Why the W‑4 Matters More Than You Think
When you start a new job, one of the first things you’ll be asked to do is fill out a Form W‑4 for withholdings (yes, this is a different from than the Form W-2 wage statement). Although its not actually filed with the IRS, checking the wrong box or skipping a section could cost you hundreds (or even thousands) when your tax filing comes around.
So who will this blog post actually help? I’m looking at my W‑2 employees—people whose employers withhold taxes from their paycheck.
If you’re an independent contractor, freelancer, or side hustler: check out our blog on estimated tax payments or book a consult to get personalized help.
Part 1: What is the W‑4, and Why Does It Matter?
Form W‑4 tells your employer how much federal income tax to withhold from your paycheck (Note: each state will separately have their own version of a withholding form you’ll fill out for your new employer as well, though all the concepts discussed here will be the same).
The more accurate your W‑4, the more likely you are to avoid:
Underpaying and owing taxes in April
Overpaying and giving the IRS an interest-free loan
For W‑2 employees with no outside income, your withholding is usually the main culprit for whether you get a refund or owe money when filing your tax return.
There are two common approaches:
💸 Refund Mindset: Have more withheld now and get a refund later
🔄 Cash Flow Mindset: Withhold less so you can use/invest the money now—but may owe in April
There’s basically no right answer here and it comes down to personal preference/planning. But if you want to discuss which makes sense for you, schedule a 1:1 tax session and see how you can optimize.
Part 2: How to Fill Out Your 2026 W‑4—Step by Step
Step 1: Personal Information
Easy. Fill in your name, address, SSN, and filing status (e.g., single, married).
Pro Tip: Many companies collect this info through an HR portal—not a physical form, so you may not even know you are filling out the form.
Step 2: Multiple Jobs or Spouse Works
This is one of the most misunderstood sections, and also trickiest to input optimally without some tax planning considerations.
You should ultimately check this box if:
You have more than one job
Your spouse also earns income
The W‑4 “Multiple Jobs Worksheet” can be really confusing—and easy to mess up. But if you wanna give it a shot, have at it. :)
Better option: Use the IRS Withholding Estimator Tool to just estimate the additional withholding needed (if any)
Best option: Book a consult with Akouson Financial. One quick session could save you hundreds in April and set you up correctly for future years.
Step 3: Claiming Dependents & Credits
Only fill this out if:
You have children under 17 (eligible for $2,000 each in credits)
You support other dependents ($500 credit each)
⚠️ BUT…
If you have side income, claiming dependents may reduce your withholding too much and lead to a tax bill. So you want to be careful with this section.
🎯 Safe route (and my generally preferred approach): Put “0” here and keep more withheld - short and simple.
Still confused here? Let’s talk about how much you should really claim—it could mean the difference between a refund and a big surprise.
Step 4: Other Adjustments
This is where you enter:
Other income (side jobs, investments)
Extra withholding
Itemized deductions (beyond the standard deduction)
Most people can skip this—unless you or your spouse have a second job or other income sources that you want considered and for which you have an additional withholding to input. Again, easy to get this wrong the first time around, so be careful.
Step 5: Sign and Submit
Just sign and date it.
If you skip this step and end up never submitting, the employer will assume you’re single with zero adjustments, and the highest taxes will be withheld (though if you are single with no dependents or side jobs, this is usually right where you should be).
Part 3: When Should You Submit a New W‑4?
You’re not required to submit one every year—but some events should make you think about how your tax return (and withholdings) will be impacted:
Starting a new job: ✅ Yes
Getting married or divorced: ✅ Yes
Having a child or new dependent: 🔁 Maybe
Earning side income or a second job: 🔁 Maybe
Taking more deductions on your return: 🔁 Maybe
A new child or side hustle doesn’t automatically mean you need to resubmit—but you should consider whether your current W‑4 still reflects your situation.
Bonus Tip: All Income Isn’t Withheld the Same
Not all employer payments are treated equally.
Bonuses, RSUs, and commissions (any one-time, variable payments) are often withheld at a flat 22% rate, no matter your actual tax bracket.
This means you could end up under-withheld and owe money—even if your regular paycheck withholding looks fine.
We’ll cover this in depth in an upcoming post. But if you recently got a bonus, stock payout, or other one-time income, schedule a consult so we can talk through the numbers.
Final Thoughts: Don’t Guess—Get It Right
The W‑4 doesn’t just need to be a form you fill out—it could be part of your tax strategy. Filling it out correctly can help you:
Keep more of your money now
Avoid owing in April
Reduce stress during tax season
If you’re unsure about any part of your W‑4—or just want a second set of eyes—let’s talk.
🔗 Book a 1:1 session with Akouson Financial to get your withholding right the first time.
Disclaimer:
The information provided in this blog is for general educational purposes only and should not be construed as tax, legal, or financial advice. Every individual’s situation is unique, and you should consult a qualified tax professional or financial advisor before making decisions based on this content. Akouson Financial and its representatives are not responsible for any actions taken based on the information provided herein.