New W-4 Form for 2020 – Did You Know?

Mar 04, 2020 By Evan Nielsen In Taxation No Comment Tags : , , , ,

The IRS has made a number of changes to Form W-4, the Employee Withholding Certificate, for tax year 2020. Most employers require employees to complete a Form W-4 in order to receive paychecks. Here are four key facts to remember about the new-look form:

  • If you provided a W-4 to your employer in a previous year and are happy with your current withholding amount, you do not need to submit a new W-4 in 2020.
  • If you start a new job in 2020, or wish to submit a new W-4 to your current employer to adjust your withholding, you must use the new 2020 form.
  • If your tax situation is simple (for example, one job, no dependents), you may provide your personal information and filing status in Step 1 of the form, and then skip down and sign the form in Step 5.
  • Steps 2, 3 and 4 of the form are intended for those with more complex tax situations, such as couples with two incomes, workers with multiple jobs, and those with non-employee income (self-employment or “gig” work, interest, dividends, etc.).

For privacy protection and the most accurate withholding, use the IRS Tax Withholding Estimator link, found below, in conjunction with Form W-4. This tool helps you calculate any needed adjustments to your paycheck withholding. After using the Estimator, enter the recommended increase to your withholding on W-4 line 4(c), or the recommended deduction from your withholding on line 4(b). A qualified tax pro can help you determine which information to enter into the Estimator to get the most reliable result possible.

IRS Tax Withholding Estimator: https://www.irs.gov/individuals/tax-withholding-estimator.

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