NEW 2020 W4 Form – Major changes!

The 2020 Form W-4, Employee’s Withholding Certificate, differs significantly from previous versions due to federal tax law changes enacted in 2018. While the IRS does not require all employees to complete the revised form—using withholding tables compatible with both old and new forms—certain employees must use it: those hired in 2020 or anyone making withholding changes during the year.

Even if your tax situation remains unchanged, the IRS recommends performing a “paycheck checkup” to determine if adjustments are needed. Use the IRS Tax Withholding Estimator, ideally with your most recent pay stub and tax return. The estimator will be updated for 2020 tax tables in early January.

Key Steps for Completing the 2020 Form W-4

• Step 1: Enter personal information (required).
• Step 2: For households with multiple jobs (optional but recommended for accuracy).
• Step 3: Claim tax credits for dependents (optional).
• Step 4: Adjust for other income (e.g., interest, dividends), itemized deductions, or extra withholding (optional).
• Step 5: Sign the form (required).

Steps 2, 3, and 4 are optional but help ensure withholding matches your tax liability. If concerned about reporting multiple jobs (Step 2) or other income (Step 4(a)), use Step 2(c) or add extra withholding in Step 4(c). The draft form and FAQs provide additional guidance.

Without submitting a new form, withholding will continue based on your previously submitted form. Always review the included instructions before completing the form.