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In fact, the IRS recommends filling out a new W-4 form every year. The form includes the following fields: Name. ... Common IRS Tax Forms Explained. 5. Add lines 3 and 4, and enter the total on ...
Starting in January 2020, there’s a new design for Form W-4.The IRS explained that the redesign will reduce confusion for filers and enhance the transparency of the tax withholding system.
Form W-4 (officially, the "Employee's Withholding Allowance Certificate") [1] is an Internal Revenue Service (IRS) tax form completed by an employee in the United States to indicate his or her tax situation (exemptions, status, etc.) to the employer. The W-4 form tells the employer the correct amount of federal tax to withhold from an employee ...
The form is not mailed to the IRS but retained by the employer. Tax withholdings depend on employee's personal situation and ideally should be equal to the annual tax due on the Form 1040. When filling out a Form W-4 an employee calculates the number of Form W-4 allowances to claim based on his or her expected tax filing situation for the year.
However, if you started a new job recently, plan to make any personal life status adjustments, or you want to increase or decrease your amount withheld, you will need to fill out the new W-4 form.
This form might not seem important, but it can impact your take-home pay and your taxes. Read on to better understand why you need a W-4.