In 2021, the employees will let their employers know how much tax to withheld from their pay with the Form W-4 2021. The 2021 edition of the tax withholding form is the same as last year.
Take note that you don’t need to file a Form W-4 at the beginning of every tax year. Your previously submitted Form W-4 is going to be effective. So you don’t necessarily need to complete a new tax withholding form just because it is renewed.
Same as the prior year’s Form W-4, you will need to detail the following when you’re filing a new tax withholding form.
- Multiple Jobs or Spouse Works
- Check the box if you hold more than one job at a time. But only check the box if both jobs pay a similar rate. Otherwise, more tax than necessary may be withheld.
- Enter the total amount of anticipated tax deductions.
- Child Tax Credit
- Multiply the number of child you have that qualifies for the Child Tax Credit by $2,000, enter the results.
- Dependent Care Credit
- Multiply the number of dependents that qualify for the Dependent Care Credit by $500, enter the results
- Enter income outside of jobs that you want to withhold tax for.
- Enter an extra withholding amount (optional)
Can’t decide whether you should file a new Form W-4 or not? Here is what to do if you’re still unsure. Take a look at your tax withholding and if there is anything unsatisfying, file a new Form W-4 in 2021. As an employee, you can submit as many Forms W-4 as you want but the new Forms W-4 you filed will be effective in your next pay.