ProfessionalTaxSoftwareReviews.com Highlights Major Changes to the Newly Revised Form W-4
Industry: Apps & Software
In June, the IRS released a draft to the proposed version of the “Employee’s Withholding Allowance Certificate” including instructions on how the form should be filled out.
California, USA (PRUnderground) July 31st, 2018
Last December’s Tax Cuts & Jobs Act has brought the IRS and Treasury together to help simplify the many complexities and changes as per the tax reform. In doing so, on their website, the IRS has provided taxpayers with updated withholding information, the draft version of Form W-4, as well as instruction for filling out said form. With the major changes that come with the newly revised form, taxpayers and tax professionals alike should familiarize themselves with these revisions to avoid any surprises.
One noticeable change to the revised form is that there is nowhere for taxpayers or tax preparers to report the number of allowances claimed as was previously reported. Additionally, other sections have been removed such as: the Personal Allowances Worksheet, Deductions, Adjustments and Additional Income Worksheet, and Two-Earners/Multiple Jobs Worksheet. Rather than requesting the number of allowances, the form now has supplemented lines for optional reporting.
Another eye-opener is the size of the proposed W-4. Where the previous version consisted of only 4 pages (instructions included), the revised draft version is only 2 pages but with an additional 11 pages of instructions.
With that being said, the IRS and Treasury have pointed out that taxpayers may continue to use the unrevised W-4, so that if taxpayers are content with their current withholding there is no need for them to file a new one. On IRS.gov, taxpayers can find the draft Form W-4 along with it’s instructions. Revised versions are expected to be released around the second week of August.
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