There has been a big change to the W4 Employee’s Withholding Certificate for 2020. The form has been completely redesigned, gone are the number of withholding exemptions we have all been used to using before. Think of it as a mini tax form. The more complicated your taxes are the more information you will need to provide on the form. The good news is if you are happy with your current income tax withholding you do not have to fill out this new form, you are able to stay with the same amount for as long as you like. However, if you need to change your withholding for any reason you will need to complete the new form. I know what you’re thinking…what if I don’t know if I need to change my withholding? The IRS has a withholding calculator that will give you an estimate of how much your refund/amount owed will be at the current amount you are having withheld. Still need more information? This article from Kiplinger goes into more detail. Of course, you can always get more information from the IRS website (www.irs.gov ). Everyone’s individual tax situation is different, so if you are still unsure if you need to make any changes or have any questions specific to your taxes please contact a CPA or tax professional.
Mark Wittwer is CFO of Diamond Media Solutions