Your W-4 affects how much federal income tax is withheld from every paycheck you receive. When it’s completed accurately and updated when life changes, it helps prevent surprise tax bills and reduces the chance of a large refund that means you overpaid throughout the year.

Whether you’re starting a new job or reassessing your finances, understanding how the W-4 works can help you feel more confident at tax time. And as a Scenic Community Credit Union member, you can also save money when it’s time to file with exclusive discounts on TurboTax® and H&R Block®.

 

What is a W-4 and Why Does it Matter?


A W-4, formally known as an Employee's Withholding Certificate, is the form your employer uses to calculate how much federal income tax to withhold from your paycheck. 

The information you provide, like your filing status, dependents, and any additional income or adjustments, determines how much is sent to the IRS on your behalf each pay period. Those withholdings fund essential services like Social Security, Medicare, education, and infrastructure.

Completing your W-4 correctly helps ensure your withholding is as accurate as possible throughout the year, not just at tax time.

 

The 5 Steps to Filling Out Your W-4

Step 1: Personal Information and Filing Status

You'll begin by entering your name, address, Social Security number, and filing status. Filing status options include:

  • Single or married filing separately
  • Head of household
  • Married filing jointly

Choosing the right status is important because it directly impacts your tax withholding. If your situation isn't straightforward, a tax professional can help you understand which option makes the most sense.

Step 2: Multiple Jobs or Other Income

This step applies if you have more than one job or if you're married filing jointly and your spouse also works. If neither applies, you can skip it. 

If it does apply, the IRS provides tools such as the Multiple Jobs Worksheet or an online estimator, to help determine whether additional withholding is needed to avoid underpayment.

Step 3: Dependents

If you have dependents and qualify for the Child Tax Credit, this is where you'll account for them. Dependents may include children or qualifying relatives who rely on you financially.
If you don't have dependents or don't qualify for the credit, this can be skipped.

Step 4: Other Adjustments (Optional)

Step 4 allows you to fine-tune your withholding. You can:
  • Account for income not subject to withholding, such as investments
  • Adjust for deductions beyond the standard deduction
  • Request extra withholding if you'd rather owe less or receive a smaller refund
While optional, this step can be helpful if your income or deductions are more complex.

Step 5: Sign and Submit

Before signing, review your information carefully. Once signed and dated, submit the form to your employer so your updated withholding can take effect.

When Should You Update Your W-4?

You're not required to update your W-4 every year, but you should consider doing so when:

  • You start a new job
  • You get married or divorced
  • You have or adopt a child
  • You take on additional income or investments
  • You owed taxes or received a large refund on your most recent return

Tax laws changed in 2020 to make withholding more accurate and transparent, which is why newer W-4 forms look different from older versions. If your financial situation changes, updating your W-4 helps ensure your withholding stays aligned with your reality.

Save on Tax Preparation with Member-Exclusive Discounts

Understanding your W-4 is only part of the equation. Filing your taxes accurately (and affordably) is just as important. That's why Scenic Community Credit Union members receive exclusive discounts on trusted tax preparation services through Love My Credit Union Rewards.

You can save even more with early-season pricing when you file by February 28, 2026, and you'll be automatically entered for a chance to win $10,000 in the Tax Time Sweepstakes. 

TurboTax® Member Savings

  • Save 20% for new and returning TurboTax users
  • Convenient online tax preparation with optional expert support
  • Easy access from your computer, tablet, or phone

H&R Block® Member Savings

  • New customers save $25; returning customers save $10
  • File in person, drop off documents, or work virtually with a tax professional
  • Personalized help tailored to your tax situation

Make Your Tax Season Simpler and More Affordable 

From reviewing your W-4 to choosing the right tax preparation option, small steps can make a big difference in your financial peace of mind. If changes occur during the year, update your W-4 with your employer so you're prepared when tax time arrives.

And don't forget - your Scenic Community Credit Union membership gives you access to valuable tools, resources, and exclusive savings designed to support your financial well-being year round.


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