The Internal Revenue Service requires taxpayers to pay their taxes gradually throughout the year. Instead of making a big payment towards your tax bill, your employer will withhold a portion of your income and forward it to the IRS. This money will go to your taxes and even if the amount withheld exceeds your tax bill, you’ll get a tax refund. So you can think of it as an investment as well.
Form W-4 is used to determine your tax withholdings. The revisioned Form W-4 for 2020 asks a series of questions to determine your tax liability. In previous years, you could claim allowances to reduce or increase your withholding. The more allowances you claimed, the less taxes would be withheld from your paycheck and vice versa.
The new Form W-4 that will be used in 2020 removed this. Now you’ll need to detail your dependents if you have any, a secondary job, and your spouse’s work if you’re married.
Now that we can no longer claim allowances, we will explain our tax situation on Form W-4. This will give the IRS better information on how much tax should be withheld from our paychecks.
Allowances are no longer used for the redesigned Form W-4. This change is meant to increase transparency, simplicity, and accuracy of the form. In the past, the value of a withholding allowance was tied to the amount of the personal exemption. Due to changes in law, currently you cannot claim personal exemptions or dependency exemptions.IRS’ explanation for the elimination of allowances.
W-4 Form 2020 Filing Instructions
As with any other IRS form, you first need to detail your personal information such as name, address, SSN and filing status on your next tax return. The redesigned Form W-4 has three other steps other than your personal information. This includes
- Multiple Jobs or Spouse Works
- Claiming Dependents
- Other Adjustments if needed
Form W-4 2020 Single Filers
If you’re single with no kids, hold one job and have no dependents, Step 2 and 3 does of the form do not apply to you. So just skip these and get to Step 4 and make adjustments if you need to make any.
Then, you can get to Step 5, enter the date of completion and sign the form.
Form W-4 2020 Married Filing Separate
Those who are married but filing separately should fill out their W-4s as how a single person would be. Fill out the steps where it applies to you. You should only complete Step 2 if you hold more than one job at a time. From there on, enter the amounts subjected to how many qualifying children you have under the age of 17 and other dependents.
Form W-4 2020 Married Filing Jointly
Joint filers have it easier when filling out their W-4. Multiply $2,000 with the number of qualifying children you have that you can claim Child Tax Credit for and do the same for every other dependent you have but instead of multiplying it with $2,000, multiply it with $500 and enter both amounts.
Withholding more tax on your Form W-4
Many Americans see their tax refunds as some sort of an investment. The more tax you withhold, the more it exceeds your total tax bill. Therefore, you’ll increase your chances of receiving a higher tax refund.
What’s best about the redesigned Form W-4 for 2020 is that you can enter any amount that you wish to be withheld. On Step 4 (c), enter the extra withholding amount. Keep in mind that the amount you enter here will be for each pay period. So you don’t withhold too little or more than you expect in extra.
Form W-4 2020 Printable
The Internal Revenue Service provides all of the tax forms that taxpayers need on the agency’s website. All the forms on the IRS website is displayed as PDF so you can view, download, or print directly off of your browser. Click the link below to download the W-4 for 2020.
Since you need to submit the completed Form W-4 to your employer or the payroll department of the company you’re working for, you do not necessarily need to file it electronically. Besides, there isn’t really an official way to file this form electronically since you don’t need to send it to the IRS.