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How to Fill Out a W-4 in New York: IT-2104 Form Explained

2026 年 4 月 8 日2026 年 4 月 8 日 by Chen Moira

You’ve just started a new job in New York and are asked to complete both a W-4 and an IT-2104. At first glance, it may seem unnecessary to fill out two forms for the same paycheck, and many employees assume both follow the same rules.

This confusion is even more common for people relocating from another state, where only one form is required. For those living in New York City or Yonkers, the added layer of local tax makes the situation even more difficult to understand.

This article explains how to fill out a W-4 in New York while also understanding how the IT-2104 form works alongside it.

It breaks down the key differences between federal and state withholding, explains how allowances affect your New York State, New York City (for residents), and Yonkers taxes, and outlines what you need to do to complete both forms correctly and avoid withholding issues.

What Is Form W-4?

Form W-4 is a federal tax document that employees complete to tell their employer how much income tax to withhold from each paycheck. It is required for all employees in the United States and is typically filled out when starting a new job or updating tax details.

Following the 2020 redesign, the W-4 no longer uses allowances. Instead, it relies on:

Filing status
Multiple jobs or additional income
Dependent tax credits
Extra withholding adjustments

According to the IRS, the form helps employers estimate the correct amount of federal tax to deduct throughout the year. You can find detailed guidance on the About Form W-4 page available on IRS.gov.

It is important to note that the W-4 applies only to federal income tax and does not determine how much New York state or local tax is withheld.

Federal vs. New York Requirements

One of the most important things to understand when working in New York is that federal and state withholding operate separately, and they use different systems.

At the federal level:

You complete Form W-4 only
The form does not use allowances
Withholding is based on income and adjustments

At the New York state level:

You must complete Form IT-2104
The form still uses allowances
It determines how much tax is deducted for New York State, New York City (for residents), and Yonkers.

Important clarification on NYC tax:

Only New York City residents are subject to NYC personal income tax.

If you work in NYC but live outside the city (such as New Jersey, Connecticut, or Long Island), you are generally not subject to NYC local tax.

This creates a clear difference:

Form	Purpose	Method
W-4	Federal tax withholding	No allowances
IT-2104	NY State + local withholding (NYC & Yonkers)	Uses allowances

This means:

You cannot copy values from your W-4 to your IT-2104
Each form must be completed separately
Errors on one form will not correct the other

How the IT-2104 Actually Works (Real Situations)

The IT-2104 form is where most employees in New York experience confusion, especially because it still uses allowances.

Moving to New York from another state

If you recently moved from a state like Texas or Florida, you may expect only one withholding form. In New York, the IT-2104 adds another layer, especially if you are now a NYC resident or subject to Yonkers tax.

If the form is completed incorrectly:

Your withholding may be too low or too high
Your paycheck may not reflect your real tax situation
Adjustments may be required later in the year

Starting a new job in New York

New employees often assume the IT-2104 works the same way as the W-4. Because the W-4 no longer uses allowances, this creates confusion when the state form asks for them.

If too many allowances are claimed:

Less tax is withheld from your paycheck
You may owe money when filing your New York tax return

If too few allowances are claimed:

More tax is withheld than necessary
Your take-home pay is reduced

Living in New York City or Yonkers

Residents of New York City and Yonkers face an additional layer of taxation.

When completing IT-2104:

Your withholding includes state + local tax (if applicable)
Allowances impact multiple tax levels
Incorrect entries can affect overall withholding accuracy

Understanding allowances in IT-2104

Allowances reduce the amount of tax withheld from your paycheck.

When you claim more allowances, a smaller amount of tax is deducted from your earnings. When you claim fewer allowances, a larger amount of tax is withheld from your paycheck.

Unlike the federal Form W-4, allowances remain a key part of how New York calculates withholding under Form IT-2104.

Because allowances directly affect how much tax is taken out, they should be based on your actual financial situation rather than an attempt to increase your take-home pay in the short term.

Why New York still uses allowances

New York has maintained its own withholding system rather than fully adopting the federal W-4 redesign. As a result:

Employees must manage two different systems
State withholding requires separate consideration
NYC residents and Yonkers taxpayers must account for local tax layers

This makes it important to review both forms carefully instead of assuming they work the same way.

Common Mistakes to Avoid

Skipping Form IT-2104 after completing the W-4: If you submit a federal Form W-4 (2020 version or later) but do not provide Form IT-2104, your employer will typically default your state and local withholding to zero allowances. Because the federal form no longer includes allowances, this often results in may result in incorrect withholding amounts from your paycheck for New York State, New York City (if you are a resident), and Yonkers taxes. This default rule is outlined in the official instructions for Form IT-2104.
Using the same information on both forms: The federal W-4 and New York IT-2104 follow different systems. The W-4 does not use allowances, while the IT-2104 does, so copying values between the two can lead to incorrect withholding.
Claiming too many allowances to increase take-home pay: While claiming more allowances reduces the amount of tax withheld, it can result in under-withholding and a tax balance due when you file your New York return.
Misunderstanding NYC tax rules: New York City income tax applies only to residents of the city. Employees who work in NYC but live elsewhere are generally not subject to NYC local tax.

How to Fill Out Forms Digitally

As you manage both federal and New York withholding forms, KDAN PDF can help you complete and organize your W-4 and IT-2104 digitally so your information stays accurate when updates are needed.

Conclusion

Filling out a W-4 in New York involves understanding that state and federal withholding follow different systems, with the IT-2104 introducing allowances and, for NYC residents and Yonkers taxpayers, additional local tax considerations.

Keeping both forms accurate is essential for avoiding surprises at tax time, and using KDAN PDF allows you to review, update, and manage your W-4 and IT-2104 digitally as your situation changes.

FAQs

Why do I need both a W-4 and an IT-2104 in New York?

The W-4 controls federal tax withholding, while the IT-2104 determines New York state and local tax withholding (including NYC for residents and Yonkers where applicable).

Does the IT-2104 affect NYC taxes?

Yes, but only if you are a New York City resident.

Should my W-4 and IT-2104 match?

No. The W-4 does not use allowances, while the IT-2104 does. Each form must be completed using its own rules.

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