2025 Deductions Worksheet for Form W-4 - Step 4(b) - Deductions Worksheet

Sep 19, 2026

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Step 4(b) of the 2025 Deductions Worksheet for Form W-4 provides line-by-line inputs used to calculate estimated deductions. It covers deductions for qualified tips, overtime compensation, and qualified passenger vehicle loan interest, along with senior age 65+ amounts. It also guides estimates for student loan interest, deductible IRA contributions, educator expenses, alimony, itemized deductions (medical, state and local taxes, mortgage interest, other), and the standard deduction. Final totals are combined to determine withholding-related results.

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Step 4(b)—Deductions Worksheet (Keep for your records.)

Qualified tips, overtime compensation, and vehicle loan interest (Lines 1a-1c)

Seniors age 65 or older (Line 3)

Additions and deductions totals (Lines 4-10)

Itemized deductions and standard deduction (Lines 6-8)

# Step 4(b)—Deductions Worksheet (Keep for your records.) See How to update withholding to account for tax law changes for 2025 at www.irs.gov/2025DeductionsWorksheet for moreinformation about whether you qualify for the deductions on lines 1a,1b,1c,3a,and 3b. 1 Deductions for qualified tips,overtime compensation,and qualified passenger vehicle loan interest. a Qualified tips.If your total income is less than $150,000($300,000 if married filing jointly),enter 1a $ b Overtime compensation.If your total income is less than $150,000($300,000 if married filingiointly),enter an estimate of your qualified overtime compensation (up to $12,500($25,000 f 1b $ c Qualified passenger vehicle loan interest.If your total income is less than $100,000($200,000 ifmarried filing jointly),enter an estimate of your qualified passenger vehicle loan interest (up to.. . 1c $ 2 $ 3 Seniors age 65 or older.If your total income is less than $75,000($150,000 if married filing jointly): a Enter $6,000 if you are age 65 or older before the end of the year ........ b Enter $6,000 if your spouse is age 65 or older before the end of the year and has a social security 3b $ 4 $ 4 Add lines 3a and 3b.Enter the result here ... 5 Enter an estimate of your student loan interest,deductible IRA contributions,educator expenses,alimony paid,and certain other adjustments from Schedule 1(Form 1040),Part II.See Pub.505 for 5 $ 6 Itemized deductions.Enter an estimate of your 2025 itemized deductions(from Schedule A(Form1040)).Such deductions may include qualifying: a Medical and dental expenses.Enter expenses in excess of 7.5%(0.075)of vour total income 6a $ b State and local taxes.If your total income s less than $500,000($250,000 f married filingseparately),enter state and local taxes paid (up to $40,000($20,000 if married filing separately)). 6b $ c Home mortgage interest.If your home acquisition debt is less than $750,000($375,000 ifmarried filing separately),enter your home mortgage interest expense ... 6d $ e Other itemized deductions........ 6e $ 7 Add lines 6a,6b,6c,6d,and 6e.Enter the result here .... 8 Standard deduction. 8 $ Enter: 9 If line 7 is greater than line 8,subtract line 8 from line 7 and enter the result here.If line 8 is greaterthan line 7,see below for the amount to enter here. 9 $ 10 Add lines 2,4,5,and 9.Enter the result here and in Step 4(b)of Form W-4 ... 10 $

FAQs

What deductions can be entered on lines 1a through 1c?

Line 1 includes deductions for qualified tips (1a), qualified overtime compensation (1b), and qualified passenger vehicle loan interest (1c), subject to income thresholds described on the worksheet.

How does the worksheet handle seniors age 65 or older?

Line 3 allows entering $6,000 if you are 65 or older before year-end, and another $6,000 for a spouse who is also 65 or older before year-end, as applicable.

How are the final totals on line 10 determined?

Line 10 adds lines 2, 4, 5, and 9, and the result is also entered in Step 4(b) of Form W-4 for withholding calculations.

Sep 19, 2026

Upload by Grenda