IRS Updates W-4 Form
It’s the beginning of tax season and for the first time in years, the IRS has updated the federal income withholding form in an effort to simplify the filing process. The W-4 form only applies to those who have started a new job in 2020. The form is now divided into five steps and you can skip questions that do not apply to your situation.
Because of the new tax law that eliminated personal exemptions, there is no need to enter in “allowances.” Instead, the form directly asks how many children and dependents are in the household, multiplying that number by the amount of federal tax credit.
Another major change has simplified the section about other incomes that requires a box to be checked if one works two jobs or has a spouse who works. Tax specialists encourage workers to review their withholdings each year. If too little is deducted, workers get a smaller refund or possibly owe money at tax time. If too much is deducted, you may receive more.