Instructions

1

Learn the conditions upon which federal income tax withholding is based. Your withholding collectively depends on your filing status, allowances, wages and the IRS' withholding tax tables. The more allowances you claim, the less wages you earn, and claiming married or head of household instead of single, all reduce your income tax liability. You are responsible for putting your allowances and filing status on your W-4.
2

Review your W-4 form to see if you are claiming the appropriate amount of allowances. Read lines A through G of the top portion of the form to understand the allowances you can claim. Each allowance gives you an amount that reduces your taxable income. If you are claiming more allowances than you are entitled to or if you wrongly claimed a filing status that puts you in a lower tax bracket, most likely enough taxes are not being withheld from your paychecks.
3

Complete a new W-4 form to adjust your withholding conditions. For example, if you are claiming too many dependents, which you cannot account for when you file your federal income tax return, put the correct amount of dependents on line D of the form. Make other line adjustments, if necessary, then tally lines A through G and put the total on line H. Complete the bottom portion of the form (the employee's withholding allowance certificate) and give it to your employer.