Big Changes Coming to Form W-4 — Maybe
Possible changes to the W-4 coming! — Maybe..
The proposed version of Form W-4 has a few more lines than the current one, and the questions are a little different. For example, the current version asks for the number of allowances. The proposed version asks for nonwage income not subject to withholding, itemized and other deductions, and tax credits (such as the child tax credit). There is also a line for those who have multiple jobs at the same time or who file as married filing jointly, with both spouses working.
According to an analysis from the American Payroll Association, “Instead of claiming allowances based on filing status using a separate worksheet, the number of allowances will be calculated automatically based on the filing status that is checked — 2 if single or married filing separately and 3 if married filing jointly or head of household.”
But don’t delve too deeply into it, as this may be far from final. According to the IRS, “We anticipate it is likely that this form will change before being released as final.”
So what should you do now? Nothing. Do not use the draft form. Keep using your current Form W-4. We are keeping an eye on the situation and will let you know when the new form has been finalized, what changes it has and when it is appropriate to start using it.