IRS Issues Final Version of the 2021 W-4 Form

IRS Issues Final Version of the 2021 W-4 Form

Each year, the Internal Revenue Service issues a new W-4. the form was radically re-designed in 2020 to make withholdings more accurate, with only minor changes between the 2020 and the 2021 forms.

Taxpayers who fill out the 2021 form are less likely to wind up with a large tax bill or a giant refund when they file their tax returns in 2022. This is money that can be invested or spent on other essential expenses throughout the year.

Updating your withholding amount is always optional, although the IRS recommends that employees revisit their W-4 forms every year.

When do you need to file a new W-4 form?

You are not required to complete a new W-4 if your tax situation remains the same. Factors such as marriage, divorce, a new child, multiple jobs, a new home or other life changes could lead you to filling out a new W-4.

New employees who are hired in 2021 and any employee who makes withholding changes in 2021 must file a new 2021 W-4 form.

If you need more help

If you find the new W-4 form confusing or feel that your situation is more unique, the IRS has made available their online tax withholding estimator. Consider using the estimator at if you:

    1. Expect to work only part of the year;
    2. Have dividend or capital gain income, or are subject to additional taxes, such as Additional Medicare Tax;
    3. Have self-employment income; or
    4. Prefer the most accurate withholding for multiple job situations.

The redesign was intended to be easier for employees to complete and to accurately tell their employers how much federal income tax they want withheld from their pay.

Payroll Partners suggests reviewing the 2021 W-4 instructions, Publication 505 and the IRS FAQs about the 2020 revisions to Form W-4 online at

Content provided by This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.