How to Fill Out Form W‑4 in 2025 (Without Messing Up Your Taxes)
Confused by the W‑4 form your employer gave you? You’re not alone. Here’s how to get it right—and avoid a surprise tax bill later.
By Akouson Financial
Why the W‑4 Matters More Than You Think
When you start a new job or your life situation changes, one of the first things you’ll be asked to do is fill out a Form W‑4. It seems simple—but checking the wrong box or skipping a section could cost you hundreds (or even thousands) when tax season comes around.
If you’re part of Gen Z or a Millennial, navigating tax forms can feel overwhelming. That’s why we’re breaking it down step-by-step—no jargon, no fluff.
✅ This guide is for W‑2 employees—people whose employers withhold taxes from their paycheck.
🚫 If you’re an independent contractor, freelancer, or side hustler: check out our upcoming 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. 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 determines if 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 the money now—but may owe in April
Both are valid. Want to estimate which makes sense for you? Schedule a 1:1 tax session.
Part 2: How to Fill Out Your 2025 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. That’s normal.
Step 2: Multiple Jobs or Spouse Works
This is one of the most misunderstood sections.
You should 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.
🛠️ 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.
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.
🎯 Safe route: Put “0” here and keep more withheld.
💬 Need clarity? 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.
Step 5: Sign and Submit
Just sign and date it.
✍️ If you skip this step, the IRS assumes you’re single with zero adjustments, and maximum taxes will be withheld.
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 rethink it:
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
Getting a raise or bonus ✅ Yes
Taking more deductions 🔁 Maybe
A new child or side hustle doesn’t automatically mean you need to resubmit—but you should evaluate 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 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 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 run the numbers.
Final Thoughts: Don’t Guess—Get It Right
The W‑4 isn’t just a form—it’s a 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—I can help.
🔗 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.