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Big Changes on the W-4 Form

Published Wednesday, January 1, 2020

On December 4, 2019, the IRS released its final version of the 2020 Form W-4. Although the IRS released new withholding tables in 2018, the W-4 remained unchanged until now.

Significant changes to the W-4 were made to bring it in line with the Tax Cuts and Jobs Act (TCJA) which changed tax rates, deductions, credits, and personal exemptions. The TCJA changed the value of personal exemptions and dependency exemptions to zero.

The Most Significant Changes Include:

  • No more withholding allowances
  • A new Marital Status — Head of Household (with associated tax tables)
  • Lines to claim exemptions from withholding have been removed
  • New sections have been added to allow for adjustments relating to multiple jobs in a household