How to Fill Out the New 2020 W-4 Form (VERY DETAILED Examples) (2020 W-4 Explained Step By Step)

How to Fill out 2020 W-4 Form By Paper or using the IRS W-4 App. (This video is loaded with detail to help you learn how the 2020 W-4 Works) (2020 W-4 Explained Step By Step)

***Important please note this video is produced for educational purposes only, and is not to be taken as tax advice of any kind. Your tax situation will almost always differ to some degree***

Detailed list of Time stamps for your reference
1:24 Part 1 - START HERE ( The facts for this example) Married filing joint (1:24 - 2:26)
2:27 Part 2 - (2020 W-4 Step 1 )Filling out the 2020 Form By hand) Filling status (2:27 - 4:02)
4:03 Part 2.1 - (2020 W-4 Step 2 Explained 1 of 2 ) (4:03 - 7:26)
7:28 Part 2.2 - (2020 W-4 Step 3) (7:28 - 8:39)
8:40 Part 2.3 - (2020 W-4 Step 2 Explained 2 of 2) (8:40 - 13:00)
13:00 Part 3 - (2020 W-4 Step 4 Explained) (13:00 - 16:22)
16:35 Part 4 - What should spouse do on their W-4? Or if you file single or another status?
18:08 Part 4 BONUS (How your Employer Calculates withholdings) (18:08 - 23:25)
23:30 Part 5 and 6 IRS W4 App and final analysis

Other related videos:

[danielmiguez]

This was insanely helpful. NO ONE, I repeat NO ONE explains the form better than you.

[rayleighmelton]

Thank you so much for this video! I am an HR Coordinator and this new Form W4 was very confusing at first. I watched the IRS instruction webinar but YOUR video is by far the most detailed and helpful video on this subject that I have seen. I feel way more confident in explaining to my employees what it is, why it is has changed, and where they need to go to help calculate their withholdings. Thanks so muchz!

[joanngeer]

Never mind. I figured it out. Neither Chipper nor his spouse are going to check this box because they have chosen option b - not option c. Got it! By the way. I’ve been watching videos for about two hours now, and yours makes the most sense. Thank you!

[edwinyoe]

It's crazy how you can learn so much from watching Youtube videos and thanks dude, now I know how to fill out W4!

[bobatl]

It’s stunning to me how the IRS has complicated what used to be a simple form. These forms are generally filled out once at the beginning of employment and then as status changes not at the beginning of each year. The IRS has now required people to know what their taxable income is going to be for the entire year. Your example did not take into account pre-tax deductions for health insurance, vision, dental etc. or 401(k). This form has been made so complicated simply because the IRS eliminated personal exemptions. The days of married with 2 are now over. This is going to result in... surprise surprise... way too much in taxes withheld and people having to employ professional tax preparers to fill out a W4!

[tabithasherman]

Thank you for this. I was going around our office today and helping people with this form, one person felt I was doing it wrong. After this I know I wasn't and I can finish helping people with this with a better understanding.

[etran]

Wow! What an awesome video, and you’re right no videos that I could find on YouTube that explain how tax is withhold. Thank you

[KenanGrace]

This is a great breakdown so far! (Still watching)! This is such an important code for people to see! W-2s can be such a complex seeming task for people who are unfamiliarwith the language used on the form!
Great video! Really inspires me and my finance channel!


Notification Squad!

Now back to the video!

[DJSuPreme]

Thank you, I feel better when you stated "this W4 does not go to the IRS"..it's just a form to let your employer know how much to deduct from your paycheck" For some reason I was so nervous about that, but now I feel.alot better!

[inthesecretplace-theholine]

You’re simply amazing! I had a headache trying to figure it out.. but your detailed explanations helped me to submit mine for work. God bless you! 🙏🏻❣️😇🌺

[pd]

That was AWESOME! Thank you sooo much! I've always wondered how the employer figures out taxes, and now I know I can grab form 15T and get the "insider info"!

[SharonU]

Thank you for taking the time out in providing detailed instructions on completing the W4 worksheet. You did a fantastic job in explaining!!!

[vanessabarragan]

Thanks for your hard work to make this video!

[jamesbollinger]

awesome video! I recently qualify for several changes, per your video, and had no idea. Thanks so much!

[anaungurean]

super. thanks a lot. We're in America for 3 years and every time we owe money, now we have a better idea of how to avoid it. Nice explanation.

[traviswilliams]

Thanks Mike. Got my appointment scheduled for a professional to do this for me this year!

[emikami]

Excellent video as always. One item of caution is to not arbitrarily fill out the Form W-4 to under withhold early in the year and later fill out a new Form W-4 to play catch up. Example would be to claim 10 child credit when you don't have any children early in the year get your withholding probably reduced to zero. Then at the final few pay checks, have a new Form W-4 to withhold nearly your entire paycheck to make up for not withholding. Since withholding amount from paychecks for the entire year is assumed as if quarterly payments were applied equally, by normal calculation, you don't face a penalty. However, there was a case where someone actually did claim 10 allowances on their old form and IRS somehow figured out the oddity of the withholding and audited the person. I think they got him for inaccuracy of filling out the Form W-4 because when you sign it, it does state that you certify the accuracy of it. So what I think is safe is to not claim anything that will result in withholding more than what you would normally be allowed on the Form W-4. Then make any adjustment by scheduling quarterly payments using U.S. Treasury's EFTPS (Electronic Federal Tax Payment System) if needed.

[evvie]

That was awesome! I have never seen that explained before. I have agonized over this time and time again and never got it right. Thank you, thank you.

[him]

This video answers lots of questions.
Thanks Mike.

[MoneyandLifeTV]

*Detailed list of Time stamps for your reference *
1:24 Part 1 - START HERE ( The facts for this example) Married filing joint (1:24 - 2:26)
2:27 Part 2 - (2020 W-4 Step 1 )Filling out the 2020 Form By hand) Filling status (2:27 - 4:02)
4:03 Part 2.1 - (2020 W-4 Step 2 Explained 1 of 2 ) (4:03 - 7:26)
7:28 Part 2.2 - (2020 W-4 Step 3) (7:28 - 8:39)
8:40 Part 2.3 - (2020 W-4 Step 2 Explained 2 of 2) (8:40 - 13:00)
13:00 Part 3 - (2020 W-4 Step 4 Explained) (13:00 - 16:22)
16:35 Part 4 - What should spouse do on their W-4? Or if you file single or another status?
18:08 Part 4 BONUS (How your Employer Calculates withholdings) (18:08 - 23:25)
23:30 Part 5 and 6 IRS W4 App and final analysis