1. Use the IRS Tax Withholding Estimator

This is the best first step. It tells you exactly what to change on your W-4.

"IRS Tax Withholding Estimator"

Website: IRS.gov (free tool)

It will ask for:

• Filing status
• Income
• Deductions
• Credits
• Extra tax already withheld

It then tells you exactly how to fill out the new W-4.

2. Adjust Your W-4 Form (2020+ version)

The modern W-4 no longer uses allowances, so you will change specific steps:

Step 1: Filing Status

Choose the correct one.

If you're the head of household or married filing jointly, your withholding will decrease.

Step 2: Multiple Jobs

If you have more than one job or a working spouse, this step can cause OVER-WITHHOLDING.

To reduce withholding:

• Use the IRS estimator OR
• Check the box for multiple jobs ✖️ (this increases withholding—so you likely want to uncheck it) OR
• Use the worksheet to adjust withholding properly.

Step 3: Dependents

If you don’t claim dependents here, your withholding will be higher.

To reduce withholding:

• Claim eligible dependents ($2,000 per qualifying child, $500 per other dependents)

Step 4: Optional Adjustments

(a) Other Income

Leave blank if you don’t want extra withholding.

(b) Deductions

If you itemize or have large deductions (mortgage interest, medical, state taxes, donations), entering them here LOWERS withholding.

(c) Extra Withholding

If you have a dollar amount here, remove it.

This instantly reduces withholding.

3. Submit a New W-4 to Your Employer

You can change your W-4 at any time during the year.

After updating, your paycheck will adjust on the next pay cycle.

4. If You Want the Simplest Fix:

If your employer is withholding way too much, the fastest option is:

• Add dependents in Step 3 (if eligible)
• Add deductions in Step 4(b)
• Remove any extra withholding in Step 4(c)