I’ve been working here before January 1, 2020, so do I need to complete a new form?
No, it is not necessary for employees hired before this date to complete a new W-4. Your taxes will continue to be withheld based on the most recent form you submitted. However, any future changes to withholdings requested after January 1, 2020, will need to be reported using the new form.
Under what conditions should I INCREASE my withholding’s?
Tax withholding’s should increase if:
You have more than one job (including self-employment or a side job), or
Married and filing jointly and have a working spouse. Please note that the instructions on the W-4 state that Steps 3 and 4 should be calculated and reported for the highest-paying job and left blank on the W-4s for any other situations.
If you and your spouse have roughly equal-paying jobs, then it is acceptable to report Step 3 and Step 4 information on either spouse’s W4. The box in Step 2(c) checked on BOTH persons’ W-4s.
Under what conditions should I DECREASE my withholding’s?
It may be appropriate to reduce your employment withholding’s if:
Tax credits are coming to you from Earned Income Credit, Additional Child Tax Credit, or credit from other dependents.
You are eligible for itemized deductions (e.g., IRA contributions or student loan interest deductions).
I have my own side business that I do on weekends, how does the new W-4 affect this?
Persons with income from self-employment or who are Independent Contractors for another employer generally will owe income tax and self-employment tax. The revised W-4 does not calculate for self-employment taxes.
Is there computer software that will help me with completing this new form?
Yes, you can log onto the Tax Withholding Estimator at www.irs.gov/W4app and complete the information requested in Steps 2, 3, and 4. Note: The Tax Withholding Estimator found in the English, Spanish, Chinese, Korean, Russian, and Vietnamese languages. Employees with more complex tax situations use Publication 505, Tax Withholding, and Estimated Tax, which is available on the IRS website. (Note: this link is for the 2019 version; the 2020 update has not yet published.)