5. New Form W-4
In December 2019, the Internal Revenue Service released its first new version of Form W-4, Employee’s Withholding Certificate, since the ’80s, intending to make simpler the process for workers to change the amount of federal tax withholding from paychecks.
The biggest change is that withholding will now be based on a taxpayer’s expected filing status and standard deduction, rather than marital status, number of dependents, and other personal exemptions. Also, employees who have filled out a W-4 in previous years need not furnish a new form just because of the redesign, but it may be worth looking into, thanks to another streamlining IRS tool.
