The Treasury Department and the IRS recently announced that they are delaying any major changes for Form W-4, based on feedback they received from the payroll and tax communities.
Earlier in the year, the IRS released a draft version, making substantial changes to Form W-4, Employee’s Withholding Allowance Certificate. These proposed changes were originally scheduled to be made for tax year 2019. With the announcement, these changes are now planned for tax year 2020, with only minor changes expected to the 2019 version. The IRS has stated the 2019 version will remain largely consistent with the 2018 version. The IRS will work closely with stakeholders to make the more substantive adjustments to the 2020 W-4 that will accurately reflect the changes encompassed in the new tax law.
In the interim, we strongly encourage taxpayers to review their withholding situation to make sure they have the right amount of tax taken out of their paychecks and thus avoid a larger tax bill for 2018.
Click here to perform a quick “paycheck checkup” using the IRS withholding calculator.
Determining how much to withhold depends on your unique financial situation. The professionals at Hamilton Tharp can help, call us today for a paycheck checkup.