The new year is upon us, and everyone is hopeful that 2020 will bring change for the better. The IRS has made a significant change that many of us will notice – a redesigned 2020 Form W-4. The W-4 is the familiar form used by employees to help employers calculate the correct amount of Federal income tax to withhold from their paychecks. Due to changes in individual income tax under the 2017 Tax Cuts and Jobs Act, the IRS was forced to make major changes to the form.
The IRS has recently released FAQ’s on how to use the new form. Individuals who begin a new job in 2020 or wish to make changes to their withholding will be required to use the updated Form W-4. Employees who previously submitted a Form W-4 to their current employer are not automatically required to complete the new form, but they may wish to do so in order to achieve more accurate withholding.
To start a conversation about your personal tax situation, please reach out to us at firstname.lastname@example.org or 800.899.3633.