W-4 redesign aims to make filling out form easier

Source: / CC BY-SA 2.0 / MGN
Source: / CC BY-SA 2.0 / MGN(KALB)
Published: Jan. 14, 2020 at 7:01 PM CST
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Tax season is right around the corner, and the IRS has given the form W-4 a makeover.

It's the first update in three decades. The change is allowances are no longer used for this form. The IRS said the facelift is supposed to make filling out the form easier.

For Norman Micke, Consulting Services Tax & Accounting President and Owner, this is the calm before the storm. With tax season days away, it will get busy.

"Things haven't seriously hit the fan yet," he said.

A new change to the form W-4 may cause more questions than normal.

"It's a necessary response to the change in tax cuts and job act," he said.

Due to changes in the 2017 law, currently you cannot claim personal exemptions or dependency exemptions.

The IRS is changing things up with the employee's withholding certificate. It's a document workers fill out so their employers can determine how much federal income tax to deduct from their paychecks.

"Before you had to worry about the exemptions you had and translate that into the allowances you claimed," Micke said.

The IRS said the change is to make it easier for people to fill out the form and increase accuracy.

"I think they're really about the same. The degree of complexity, not noticeably different," Micke said.

The IRS said the new design also replaces complicated worksheets with more straightforward questions.

In this case, Micke said change is good.

“It doesn't require complicated complications or working through a lot of tables," he said.

Everyone is not required to submit a new form. The IRS said workers who have used the W-4 form in any year before 2020 are not required to furnish another because of the re-design.

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