- Tax Planning
- Birth or death of dependant or spouse
- Adoption of a child
Friday, January 31, 2020
Changes with Federal W-4 and Tax Withholding
Recent changes in the Federal withholding tables are causing concern. Changes with the new W-4 are causing confusion. I'm here to help.
Even if you do NOT file a new W-4 you will be affected by the new Federal Income Tax Withholding tables for 2020. So even if you keep Married with 0 dependants you may see a decrease in your federal withholding, at times $20 - $60 less that last year with the same gross wages.
The IRS has given us the following information:
Normally I suggest to employees that they update their W-4's after having their income taxes done. Income tax preparers and most software have projections and can suggest and most times print a new updated W-4 for you to give to your employer.
Because the changes have been at times so dramatic, people are growing concerned that they may be stuck with a large tax bill next year, so I've found the following help:
You will need last year's W-2 and your most recent pay stub with year-to-date totals before you begin using this estimator. When complete it will print an updated W-4 for you to give to your employer.
There is no limit on the number of times a year you can submit an updated W-4 and should always remember to do so whenever you have major life events, such as:
Please ask your income tax professional for additional income tax planning advice.