New W-4 Form Effective 1-1-2020
Effective January 1st, 2020, there will be a new W-4 Form released, designed to be more transparent and will ask more straightforward questions, the Treasury Department states. According to Bloomberg news, the Internal Revenue Service is currently redesigning the W-4 Form, which determines how much tax employers take out of employees paycheck. The current W-4 Form is complex and difficult to understand. The new form will help prevent tax refund surprises, which some people experienced when they filed their 2018 tax return.
You can update your W-4 withholding’s with your employer at anytime, however if you want to make the change on the new form, you will need to submit a new W-4 form after 1/1/2020. It is also suggested that you review and update your W-4 Form each year if needed, depending on how much you owed in taxes or got back in refunds based upon your tax return.
If you have any questions please reach out to your accountant or tax preparer. Or give CFO 4 Your Biz a call and we can offer some suggestions based on your previous tax return and current situation.