Beginning January 1, 2020, the IRS has issued a new W-4 form. This is significant as the recent Tax Reform eliminated personal exemptions and doubled the standard deduction when filing your personal taxes. It is recommended that a new W4 be filed with your employer to ensure the proper withholding is deducted under the new code. It is highly recommended the new form be filed with your employer if you: Work for more than one job If you spouse also works and you file jointly If you claim the child tax credit or other tax credit If you have high income and a more complex return Completing the Form I have received a lot of calls asking “what to do with this new form”, so I have included some instructions to assist people. You must complete steps 1 and 5. Steps 2, 3, and 4 are optional but can be helpful in ensuring your tax withholding more closely matches your tax obligation. When you fill out Step 1 only, your withholding will be computed based on your filing status’s standard deduction and tax rates, with no other adjustments There are certain situations that increasing the withholding should be considered: You hold more than one job at a time or you and your spouse both have jobs (Step 2) You have income from sources other than jobs or self- employment There are certain situations that decreasing the withholding should be considered: You are eligible for income tax credits, child tax credit or credit for dependents (Step 3) You are eligible for deductions, such as itemized deductions, IRA contributions or student loan interest deductions It is also a great idea to use the Tax Withholding Estimator to help ensure maximum accuracy. The link is below. Note you will need your latest paystub (to enter the federal tax withheld from last check, and the YTD federal tax withheld). For more information contact me at nkirkland@bythenumberz.com.