New Form W-4 Draft is Here!

         After a time of adjustment, the Form W-4 has been redesigned and is available for comment from the public. It is expected to be used in 2020. This is the form used to determine how much tax is to be withheld from an employee’s paycheck. This version will reflect the changes brought on by the Tax Cuts and Jobs Act (TCJA). A portion of the draft has been provided below.

          It will require the Taxpayer to list every position they have. Essentially, they must tell their employer if they are holding another job, which is becoming increasingly common in the age of the side hustle. This might make some uncomfortable, but it is important to get the right balance on your Paycheck Withholding. This year, many were shocked to see their refunds shrink, or turn into a surprise debt. This is because the TCJA changed the withholding tables, and often this meant more take home pay during the year.  In the end, the Internal Revenue Service (IRS) will keep track of what it feels is the obligation of each Taxpayer and will try to balance matters out, one way or another.


          Considering we are now halfway through the year, now is an especially good to time to check on your Paycheck Withholding. It’s better to prepare now and plan for next year, than to have another surprise that could have been avoided. If you are in a household with 2 incomes, or an individual who has more than 1 job, please seek out a Qualified Tax Professional to help you understand the details of Paycheck Withholding and the TCJA so you won’t have to worry about a surprise tax debt next year.

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