Skip to content

IRS Issues New 2020 Form W-4

Published on

Remember to submit a new W-4 if your filing status, other income, deductions, or credits have changed or will change for the next year

The IRS redesigned the Form W-4 to increase transparency and accuracy in the withholding system.  The changes on the revised 2020 Form W-4 are:

  1. There are five steps on the W-4 for the employee to complete
    • Step 1:  Personal Information (required)
    • Step 2:  Multiple Jobs or Spouse Works (if applicable) – do one of the following:
      • Use estimator at www.irs.gov/W4App - most accurate withholding
      • Use Multiple Jobs Worksheet on page 3 of W4 – rough estimate of withholding
        You may check the box with only two jobs total – higher withholding
    • Step 3:  Claim Dependents (if applicable)
    • Step 4:  Other Adjustments (optional)
    • Step 5:  Sign and Date (required)
      Employees who only complete the required Steps 1 and 5: When employees only complete Steps 1 and 5, employers will figure withholdings based on the filing status’s (single, married, head of household) standard deduction and tax rates with no other adjustments. 

      Adjustments on Steps 2, 3, and 4 are optional, and will affect withholding calculations:  Employees will need to provide detailed information on their household income.  If employees have privacy concerns, use the worksheets or the IRS’s Tax Withholding Estimator and only provide their total withholding amount in Step 4.

  2. No more withholding allowances – Employees will no longer be able to adjust their tax withholdings using allowances.  Instead, employees will provide employers with amounts to increase or reduce tax withholdings.
  3. Additional worksheets – The form includes two worksheets (Multiple Jobs Worksheet on page 3 and tables for employees with multiple jobs on page 4).
  4. Exemptions – Employees who write “Exempt” on Form W-4 in the space below Step 4(c) shall have no federal or state income tax withheld from their paychecks.
  5. Current employees are NOT required to submit a new W-4 form – Employees who are hired in 2020, or wish to revise their W-4 information after December 31, 2019, must use the 2020 Form W-4.

2020 IRS W4 Form