2026 W-4 Step 4(b): Deductions Worksheet & Examples
Enter line 15 of the Deductions Worksheet on page 4 of the 2026 IRS Form W-4 if you expect qualifying deductions beyond the basic standard deduction and want payroll to account for them. You do not enter your annual salary, the standard deduction by itself, or the sum of every deduction on your pay stub. If no worksheet items apply, you can generally leave Step 4(b) blank. Open the official 2026 W-4 (PDF).
The 2026 worksheet covers qualifying tips and overtime compensation, eligible passenger-vehicle loan interest, certain senior deductions, Schedule 1 adjustments, itemized deductions, and qualifying cash gifts. Start with the decision guide below, then use the numbered IRS worksheet to calculate the amount you can support. A W-4 changes withholding; it does not establish eligibility for a deduction on your tax return.
What does Step 4(b) on Form W-4 mean?
Step 4(b) tells payroll about eligible estimated deductions that go beyond the basic standard deduction already assumed in the withholding calculation. A valid amount generally reduces the federal income tax withheld from future paychecks. The amount is an annual deduction estimate, not an extra amount of take-home pay and not a tax credit.
| Form W-4 entry | What belongs here | General withholding effect |
|---|---|---|
| Step 4(a) | Other expected income not from jobs | May increase federal withholding |
| Step 4(b) | 2026 Deductions Worksheet line 15 | May decrease federal withholding |
| Step 4(c) | Extra federal tax to withhold each pay period | Increases withholding |
If a $5,000 deduction goes on Step 4(b), you do not get $5,000 added to your paycheck. Payroll uses the amount in its withholding method, along with wages, pay periods, filing status, and the rest of your W-4. For the corresponding pay-stub tax line, see what FIT/FWT means on your pay stub.
Do I have to fill out Step 4(b) on my W-4?
Not always. Leave Step 4(b) blank if none of the extra deductions on the 2026 worksheet apply. If you expect an eligible worksheet deduction and want the employer to reflect it during the year, complete page 4 first and transfer its line 15 total. The standard deduction by itself does not belong in Step 4(b).
If you have no other applicable worksheet items, Step 4(b) can generally stay blank.
Check worksheet lines 1a and 1b. Do not enter every tip or all overtime wages without checking qualification.
Check line 1c and its income, loan, and vehicle restrictions.
Check lines 3a and 3b for the additional senior deduction and its conditions.
Check worksheet line 5 and the applicable Schedule 1, Part II rules.
Complete lines 6–14, including the line 14 comparison. Do not copy your entire standard deduction into Step 4(b).
Do not enter your standard deduction alone. For 2026, the W-4 worksheet uses $16,100 for single or married filing separately, $24,150 for head of household, and $32,200 for married filing jointly or qualifying surviving spouse. Those figures are comparison inputs on worksheet line 11, not automatic Step 4(b) entries. Check page 4 of the IRS form.
Retirement and benefit amounts already taken out through payroll are not automatically additional Step 4(b) deductions. For example, do not copy a traditional 401(k) payroll contribution into the worksheet as a deductible IRA contribution. See pre-tax versus post-tax paycheck deductions.
How to complete the 2026 W-4 Deductions Worksheet
Keep page 4 of the official 2026 IRS W-4 beside this guide. Enter estimates only for items that apply to your circumstances. Complete the worksheet in numbered order, then transfer line 15 to Step 4(b) on page 1. The worksheet is for your records; give your employer the signed W-4, not the worksheet.
2026 worksheet lines and deduction limits
| Line | What you estimate or calculate | Important qualification |
|---|---|---|
| 1a | Up to $25,000 in qualified tips | The W-4 line uses estimated total income under $150,000, or under $300,000 when filing jointly. Not all tips or service charges qualify. |
| 1b | Up to $12,500 in qualified overtime premium, or $25,000 jointly | Use only qualifying overtime compensation, generally the premium above the regular pay rate for qualifying overtime, not all overtime wages. |
| 1c | Up to $10,000 in eligible passenger-vehicle loan interest | The W-4 line uses income under $100,000, or $200,000 jointly. The vehicle and loan must also meet federal rules; lease payments and loan principal do not qualify. |
| 2 | Add lines 1a + 1b + 1c | Use supported estimates, after checking eligibility. |
| 3a, 3b, 4 | Enter $6,000 per eligible person age 65 or older; add on line 4 | The worksheet uses income under $75,000, or $150,000 jointly, and applicable filing and Social Security number requirements. |
| 5 | Estimated qualifying Schedule 1, Part II adjustments | For example, deductible IRA contributions and eligible student-loan interest. Do not double count payroll pre-tax deductions. |
| 6a–6e, 7 | Medical expenses above 7.5% of income; qualified state/local tax, mortgage interest, charitable gifts, and other Schedule A deductions; add on line 7 | The worksheet provides specific 2026 limits, including a $40,400 SALT cap ($20,200 if married filing separately) under its stated income conditions, and a 0.5%-of-income threshold for itemized charitable gifts. |
| 8a, 8b | Enter total income, then subtract worksheet line 4 | If line 4 exceeds line 8a, enter zero on line 8b and line 10; skip line 9, as the form instructs. |
| 9, 10 | Apply the itemized deduction limit: carry line 7 if line 9 exceeds line 8b; otherwise use 94% of line 7 | Line 9 is $768,700 for joint/qualifying surviving spouse, $640,600 single/head of household, or $384,350 married filing separately. |
| 11 | Enter the filing-status standard deduction: $16,100 / $24,150 / $32,200 | Do not transfer this amount directly to Step 4(b). |
| 12, 13 | If taking the standard deduction, enter up to $1,000 of qualifying cash gifts ($2,000 jointly); add line 11 + line 12 on line 13 | Use only qualifying cash contributions and keep supporting records; do not count the same gift twice. |
| 14, 15 | Use the line 14 comparison below; then add lines 2 + 4 + 5 + 14 | Line 15 is the amount transferred to W-4 Step 4(b). |
The income tests written on page 4 are simplified screening instructions for withholding estimates. Actual deductions may be reduced or disallowed under modified-adjusted-gross-income phaseouts, filing-status rules, Social Security number requirements, vehicle qualifications, or other limitations. Before using lines 1a–1c or 3a–3b, see the IRS Schedule 1-A overview and current return instructions. A W-4 is not proof that the final deduction is allowed.
Line 14: how to compare itemized deductions with the standard deduction
This is the worksheet's most easily missed decision. First complete the preceding lines, including any itemized-deduction limitation and the applicable standard deduction.
Line 14 = line 10 − line 11. Use line 11 in the subtraction, even though you compared against line 13.
Line 14 = line 12. Do not transfer the full standard deduction or the full amount on line 13.
Line 15 = line 2 + line 4 + line 5 + line 14 → Step 4(b)
If line 10 is greater than line 13: subtract line 11 from line 10 and put that result on line 14. If line 13 is greater than line 10: put line 12 on line 14. If the amounts tie, both paths yield line 12, so use that amount. The IRS comparison deliberately uses line 13 to decide the branch but line 11, not line 13, in the subtraction.
Check your completed totals against page 4 of the IRS form before you sign and give the W-4 to your employer.
Three worked W-4 Step 4(b) examples
These fictional figures show how to move amounts through the worksheet. They are not personalized eligibility decisions, tax-return calculations, or estimates of actual paycheck increases. All examples assume other worksheet lines are zero unless stated.
Read each worked example alongside the form: first find its relevant worksheet line, complete line 14 if needed, then add lines 2, 4, 5, and 14 on line 15. These are fictional examples, not individualized tax calculations.
Example 1: qualified tips and overtime premium
Jordan files single and has verified eligibility for an estimated $10,000 in qualified tips. Jordan earns $20 per regular hour and $30 per qualifying overtime hour. For 200 such overtime hours, the premium is ($30 − $20) × 200 = $2,000, not $6,000 of total overtime wages.
| Worksheet line | Entry | Explanation |
|---|---|---|
| 1a | $10,000 | Eligible estimated tips |
| 1b | $2,000 | Qualified overtime premium |
| 2 | $12,000 | Sum of 1a, 1b, and zero on 1c |
| 4 + 5 + 14 | $0 | No other applicable amounts |
| 15 → Step 4(b) | $12,000 | Annual deductions estimate |
Check whether the overtime actually qualifies: not all contractually paid extra hours meet the federal qualified-overtime rules. For wage records, see how to identify qualified overtime in payroll records.
Example 2: itemized deductions above the standard deduction
Casey files single, has $22,000 of eligible itemized deductions after the applicable line 10 limitation, and has no qualifying cash-gift amount on line 12. Assume no other worksheet deductions.
| Line | Amount | Calculation |
|---|---|---|
| 10 | $22,000 | Eligible itemized amount |
| 11 | $16,100 | 2026 single standard deduction |
| 12, 13 | $0; $16,100 | No cash-gift entry; line 11 + line 12 |
| 14 | $5,900 | $22,000 − $16,100, since line 10 exceeds line 13 |
| 15 → Step 4(b) | $5,900 | Other worksheet lines are zero |
Entering $22,000 or $16,100 directly in Step 4(b) would ignore the worksheet's required comparison.
Example 3: taking the standard deduction with a qualifying cash gift
Morgan files single and expects $600 of qualifying cash gifts while taking the standard deduction. Morgan has no other worksheet items, including eligible itemized deductions.
| Line | Amount | Calculation |
|---|---|---|
| 10 | $0 | No itemized deductions |
| 11 | $16,100 | 2026 single standard deduction |
| 12 | $600 | Qualifying cash gifts, within the $1,000 worksheet limit |
| 13 | $16,700 | Line 11 + line 12 |
| 14 | $600 | Line 13 exceeds line 10, so use line 12 |
| 15 → Step 4(b) | $600 | Other worksheet lines are zero |
This example is specific to the 2026 worksheet; do not reuse older-year W-4 deduction instructions without checking the form year.
What should you not put in W-4 Step 4(b)?
| Common entry | Why it is incorrect |
|---|---|
| Your entire salary or gross pay | Payroll already knows job wages for withholding. |
| Your basic 2026 standard deduction | Already part of the ordinary withholding assumption. |
| Your expected refund or tax bill | Step 4(b) is a deduction estimate, not a tax payment or credit. |
| All overtime pay | Only qualifying overtime premium goes on worksheet line 1b. |
| Every pay-stub deduction | Many employee benefits already reduce payroll taxable wages or do not qualify here. |
| The same deduction on two W-4s | Can reduce household withholding twice when there are multiple jobs. |
A deliberately unsupported number can cause too little tax to be withheld, with a tax bill and possible penalties later. Estimate conservatively when eligibility or the final deductible amount is uncertain, and use the IRS estimator when your situation is complex.
Why is my W-4 Step 4(b) amount different than expected?
If your line 15 total looks too large, too small, or different from the amount on your pay stub, check the entries in this order. The worksheet calculates an annual estimate of deductions for withholding, not the amount of federal income tax you will save.
- Check line 11 versus line 14. Line 11 is the basic standard deduction used for comparison; you do not simply enter it on Step 4(b). Use the actual line 14 branch to determine any additional amount.
- Check your overtime input. Worksheet line 1b uses eligible overtime premium, not all overtime pay. For a worker earning $20 per regular hour and $30 per qualifying overtime hour, the potential premium is $10 per eligible overtime hour. See how overtime appears in wage records for a separate payroll-focused explanation.
- Do not double count paycheck deductions. Retirement and benefit amounts already reflected in taxable pay are not automatically Schedule 1 adjustments that belong on worksheet line 5.
- Check jobs and timing. If you and your spouse both work or you hold two jobs, follow Step 2 and avoid using the same deduction on multiple W-4s. A midyear W-4 cannot undo federal tax already withheld earlier in the year.
- Check eligibility and income limits. The worksheet's screening limits are not a complete qualification test for Schedule 1-A deductions. If amounts are uncertain, consult the applicable IRS instructions before entering them.
Review the federal income tax (FIT/FWT) line on a later pay stub, not gross pay or Social Security/Medicare withholding. The amount on Step 4(b) is not a direct paycheck payment, and the change depends on payroll timing and your other W-4 entries. For multiple jobs or changes during the year, use the IRS Tax Withholding Estimator.
What if you have two jobs, a working spouse, or a midyear change?
For more than one job, or if you file jointly and your spouse also works, review Step 2. The IRS instructs you to complete Steps 3 through 4(b) on only one of the W-4s, preferably for the highest-paying job. Do not repeat a household deduction total on multiple forms. See page 1 of the 2026 Form W-4.
When you submit a new form late in the year, have fluctuating earnings, or already had too much or too little tax withheld, page 4 alone does not adjust for every paycheck you have already received. Use the IRS Tax Withholding Estimator with current pay stubs for a full-year check. If you have self-employment income, follow the estimator's instructions rather than putting that income into Step 4(a) as though it were interest or dividends.
After you enter Step 4(b): what happens to your paycheck?
- Sign the W-4 and give it to your employer or payroll team. Keep the worksheet and support for your estimates.
- Ask when the revised W-4 will take effect. It generally affects upcoming payroll calculations, not taxes already withheld on previous paychecks.
- On a subsequent similar pay period, compare the FIT/FWT amount and current versus year-to-date withholding. An amount on Step 4(b) does not directly exempt wages from Social Security or Medicare taxes.
- Check your full-year situation with the IRS estimator, especially after changes in wages, dependents, number of jobs, or deductible expenses. Submit a revised W-4 if needed.
For a clearer breakdown of the wage and tax fields, use the pay-stub reading guide.
Once you have calculated and checked your worksheet entry, use the ePaystubs W-4 form generator to prepare the form for your employer. Verify that its preview matches your IRS worksheet total before you sign or submit it. This generator is not the IRS withholding estimator.
Frequently asked questions
Can I leave W-4 Step 4(b) blank if I claim the standard deduction?
Yes, if none of the additional worksheet deductions apply. But you might still have a valid line 15 amount from qualified tips, overtime premium, Schedule 1 adjustments, qualifying cash gifts, or other eligible categories even when claiming the standard deduction.
Is the 2026 Step 4(b) worksheet the same as the old allowances worksheet?
No. The current federal W-4 does not ask for a number of withholding allowances. Use the 2026 Deductions Worksheet on page 4 and transfer its line 15 dollar amount to Step 4(b). An old “Worksheet B” instruction may refer to an earlier W-4 or a state form.
Do I enter itemized deductions or only the amount above the standard deduction?
Estimate eligible itemized deductions on worksheet lines 6 and 7, apply lines 8–10, then follow the exact comparison on lines 11–14. Only transfer the final line 15 total to the W-4 itself.
Does a larger Step 4(b) mean a larger refund?
Not generally. A valid larger entry can reduce tax withheld during the year, potentially increasing take-home pay but reducing your eventual refund or increasing the tax due. Your actual tax liability is calculated when you file your return.
Will a Step 4(b) amount reduce Social Security and Medicare withholding?
No. It is an input for federal income tax withholding. It does not by itself change FICA treatment of wages, including otherwise covered tips or overtime.