Form W-4 Employee’s Withholding Allowance and Certificate have been revisioned by the IRS. For the rest of 2020, the new W-4 must be used. Those who want to keep their current withholdings can do so without the need for issuing a new W-4. The old form is now replaced with a much simpler W-4 that guides you step by step. Here is what the new Form W-4 for 2020 contains.
- Step 1: Personal Information
- Step 2: Spouse Works or Multiple Jobs
- Step 3: Claiming Dependents
- Step 4: Other Adjustments
- Other income
- Extra withholding
- Step 5: Signature and Employer Information
Every step of the way speaks for itself. One thing to keep in mind is that when you’re completing Step 2, make sure that you check the box on Step 2 if there are two jobs total. Also, under Step 4’s (a) part, the other income refers to income, not from jobs. This can include interests, retirement income, or dividends. So make sure that you separate this kind of income from your job if you have any.
Other than these changes, Form W-4 has been made simpler to complete. The IRS website’s FAQ (Frequently Asked Questions) section refers to changes in W-4 as “The new design reduces the form’s complexity and increases the transparency and accuracy of the withholding system. While it uses the same underlying information as the old design, it replaces complicated worksheets with more straightforward questions that make accurate withholding easier for employees.”
Need more instructions on filing the Form W-4? Make sure you to visit the updated instructions on Form W-4.