The IRS has released a draft of its new Form W-4 available for public comment.
The new tax withholding form will need to account for multiple jobs in a single household, the number of future claim deductions, and nontaxable income.
While no date has been set yet, the new form is expected to be in use for 2020.
As Pete Isberg, head of government relations at payroll company ADP explains:
“If you want to get the withholding right, it will work like the tax return itself…There will be input areas that look more like a 1040 summary than the old Form W-4.”
Taxpayers are encouraged to “review their tax withholding situation as soon as possible to avoid having too little or too much withheld from their paychecks” for the current 2019 tax year.
For more details on the new form, please click here.
The information included in this blog post originally appeared in an article from CNBC on May 31, 2019 written by Darla Mercado.