IRS Releases New W-4 Form

For 2020, the IRS is again revising and updating forms, including the Form W-4 used to tell your employer what they should withhold from your wages for income tax. The redesigned form is simpler than last year but thanks to the new tax law, there’s still a lot of confusion regarding how to best use it. The biggest change is that exemptions are no longer part of the calculations. Under previous law, the number of dependents you claimed had a major impact on the resulting tax. But that’s no longer the case – dependents don’t have nearly the same impact so they’re not included on the worksheet. But most will see an adjustment in their taxable income under the new law. We recommend that everyone take a look at their personal tax situation and provide their employer with an updated W-4 if it hasn’t been updated in the past 24 months. The IRS provides a simple calculator that can help – www.irs.gov/W4app.

Reviewing your withholdings now will help avoid any surprises when it comes tax time. If you have more questions, contact us at (480) 888-7111 to schedule your free tax consultation!

Disclaimer: For informational purposes only. Does not constitute legal, financial, or other advice. Consult with an attorney before taking any action.