Yet Again, The IRS Overhauls Form W-4 to Reflect the Tax Cuts & Jobs Act

The Internal Revenue Service is making changes another round of changes to Form W-4, Employee’s Withholding Allowance Certificate. This form is used for federal tax withholdings for W-2 employees. The IRS tried to revise the form last year but had to re-address the changes after receiving criticism about the document’s complexity and the inaccuracy of withholdings that resulted.

The IRS has now released an early draft of a revamped, simpler Form W-4 that  should lead to a more precise level of withholdings for employees. Regardless, the IRS doesn’t require employers to have its employees submit a new Form W-4 each year.  Typically, only new hires and those wishing to adjust withholdings will fill out a new form.

DWA recommends that W-2 employees to download the new IRS Form W-4 at https://www.irs.gov/pub/irs-pdf/fw4.pdf and submit it to their employer. This update will help to ensure a sufficient amount of federal tax is withheld from each paycheck.

Contact Ryan Robertson, CPA at ryan@deltawealthadv.com with any questions.

 

 

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