Withholding Tax Information

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    Should all employees fill out a new W-4 withholding form for tax year 2024? If they don’t fill out a new form, do their deductions stay the same or do employers need to change their withholding, using the $40 total allowance?

    Employers who expect to receive updated W-4 forms from employees using the 2024 IA-W-4 form, but who have not yet received the updated W-4 form, may temporarily use $40 as the total allowance amount and $0 as the additional withholding amount when calculating these employees’ withholding amounts.

    Alternatively, for employees who have furnished Form W-4 in any year before 2024, employers may continue to compute withholding based on the information from the employee's most recently furnished Form W-4 but, if they do, must make the following modification: Multiply the number of allowances claimed on line 6 of the pre-2024 W-4 by $40 to determine the amount of allowances. For example, if an employee claims 6 total allowances on a 2023 IA W-4, when calculating the 2024 Iowa withholding the employer should use $240 (6*$40) of total allowances.

    Read more about income withholding for tax year 2024.

    If employees currently have 0 allowances on their W-4, would they still want to claim $40? 

    Employees are not required to claim personal allowances. Allowances are based on specific factors (filing status, age, being blind). The employee should read the instructions (page 2 of the form) to determine if any of the allowance factors apply to them. Not claiming them could result in more tax being withheld which will either reduce their tax owed or increase their refund when they file their 2024 return.

    Calculate your withholding using the Withholding Estimator.

    What does “OTHER” represent for Marital Status on the W-4 form?

    Other = Single, Married Filing Separately, or Qualifying Surviving Spouse


Source URL: https://tax.iowa.gov/withholding-tax-information