The IRS just released the finalized W-4 for 2020 and it’s ready to be used!
If you didn’t see the initial draft of the W-4, click here to learn more about what changed from the version you’re familiar with.
If you did see the first drafts, you’ll be happy to know that no drastic changes were made in this finalized version. Besides some minor changes in word choice, the IRS added information that makes the form easier to understand.
Most importantly, on Page 2, they explicitly state that taxpayers who check box 2(c) will “increase their withholding and significantly reduce their paycheck (often by thousands of dollars over the year).” This wording did not exist on the first versions and will help taxpayers understand exactly what checking that option will mean for their paychecks.
They also added further clarification regarding Step 2 for people who have more than one job or are filing jointly with a spouse. On Page 2, they better explain options a, b, and c so that taxpayers can choose the one that best fits their situation.
Now that the form is ready to use, here’s our quick guide to the 2020 W-4, along with key information to make filling it out as easy as possible.
As we mentioned before, if you don’t have any changes to your existing W-4, you don’t need to do anything with the new form. But if you have the time, it never hurts to double check your information against the 2020 W-4.
For more information and answers to specific questions, check out the IRS’s FAQs.