New W-4 Tax Withholding Form Is Not Simple

 The draft of the proposed, new W-4 tax withholding form has been released for comment until July 1.  In many ways it is like filling out a  supplemental 1040 and people will have to look at their last year tax form to fill it out. 

If you have a second job, summer job, both spouses work, own a small business and work another
job, you will need to carefully calculate your new W-4.  All family streams of income should be included. Even the IRS calculator is not simple.

Families with dependents need to remember the personal and dependent exemptions no longer exist.  Child care tax credits have changed.  People who used to itemize need to recalculate withholding.  People who have gig jobs need to calculate all streams of income.  Retirees, depending on total income, may need to have withholding on Social Security(W-4V) and pensions(W-4P).

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