W-4

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VGALVEZ
VGALVEZ Member Newcomer

Hello!

I am required to fill up a W-4. I am confused which amount I would write in Step2-1, using table 4.

Answers

  • Kristine2654
    Kristine2654 Member Level 4
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    Hi VGALVEZ,

    What you enter in Step 2-1 depends on whether or not you have more than one job and/or if you are married and your spouse also works. Have you looked at the PDF version of the W-4? It has some general instructions you can read on page 3 that will help answer your question I think.

    The Human Resources (HR) or payroll department where you work should also be able to help you.

  • MatthewD
    MatthewD FreeTaxUSA Team
    edited November 2023
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    Hi VGALVEZ,

    Step 2-1 is required if you hold more than one job at the same time. Let me illustrate how that works.

    The instructions say, "from the appropriate table on page 4. Using the “Higher Paying Job” row and the
    “Lower Paying Job” column, find the value at the intersection of the two household salaries and enter
    that value on line 1." Since I don't know your marital status, I am going to use the Single Table, but you can use whatever one applies. Here is an example.

    In the example below (Image 1) the taxpayer is Single and had two jobs. The higher paying job is between $40,000 - $59,999 a year. The lower paying job is between $20,000 - $29,999 a year. So the intersection is the amount 4,750. That is the amount for Step 2(b) line 1. It says enter that amount and skip to line 3.

    Image 1

    Line 3 is the number of pay periods for the year. For example, if you are paid twice a month, then enter 24.

    Line 4, you simply divide the amount from line 1 (4,750) by 24. In our example, that amount would be $197.91. Put that amount on Step 4b and finish the worksheet.

    I hope that example helps.

  • VGALVEZ
    VGALVEZ Member Newcomer
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    Thank you very much. This one clarified my confusion.