W-4 Updated for 2018

The IRS has now released the 2018 Form W-4 and an updated withholding calculator employees can use to review their withholding. The IRS calls the withholding calculator a “payroll checkup.”  Employees should consult their accountants if they need more specific tax advice.

 

What’s new on the W-4:

The new form looks a lot like the old form, except the whole package has doubled in size, from two pages to four, mainly expanded due to instructions for employees.

The personal allowances worksheet moves to page three and is more complicated because of the doubling of the standard deduction, the suspension of personal exemptions and changes to dependent tax credits. (New W4 www.irs.gov)

 

W-4 worksheet vs. withholding calculator The IRS says that the withholding calculator is more accurate than the worksheet (instructions) that accompany the W-4.

 

Who should use the new withholding calculator

Especially those with two-income households, taxpayers who claim credits on their 1040s and those who itemize. Employees will need their pay stubs and their 2017 1040.  The new calculator can be found here: https://www.irs.gov/individuals/irs-withholding-calculator

 

 

 

Note: instructions on the W4 refers to two publications that have not been updated at this time