New Way to Start A Job in 2020

       When starting a new job, every employee gets a Form W-4. This will tell the employer how much money to withhold from the paycheck. These withholding amounts can lead to owing taxes after filing or getting a refund. As a result of the Tax Cuts and Jobs Act (TCJA) from 2017, this form has been changed.

          Instead of checking off “allowances” to be used, it will ask for actual dollar amounts. This means that new employees will need to consider outside sources of income to make sure that the right amount is withheld in the eyes of the Internal Revenue Service (IRS). This is a controversial point for some because it may allow an employer to see if their employees have a second job. It will also require coordination with married couples to make sure that neither spouse under-withholds, which will lead to a tax bill the next year. The instructions must be read very carefully. Taking your time and filing the form in correctly will save a lot of money and anxiety in the future.

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