NEW MORE CONFUSING W-4 FOR 2020
If you were disappointed with the size of your tax refund or you had to write a huge check for your federal income taxes in April, don’t expect things to change for the upcoming tax year unless you change your W-4.
The W-4 form is so very confusing as is and it is even worse for 2020 and beyond. If you cut and paste this link in your browser, (https://finance.yahoo.com/news/confusing-w-4-form-coming-090016862.html), you will have valuable financial information guiding you through this form and what to expect in 2020.
You still have time to change your W-4 for the remainder of this year which may result in a refund next April. If you are paid weekly you have 23 or so paychecks remaining in 2019 which could make a difference. As stated in my previous blog, cut and paste this link ( https://www.irs.gov/paycheck-checkup) and it will take you to the IRS website with a tax calculator that can assist you in calculating deductions which may result in refunds or not having to write that huge check.
While Trump’s tax cuts resulted in us seeing more money in our paychecks each week, the result was we didn’t withhold enough and had to write that check for federal income taxes in April. During 2018 the Internal Revenue Service and maybe your tax accountant encouraged you to do a “Paycheck Checkup” to make sure your withholding was adequate. Most people did not do that ending up paying additional federal taxes and more likely than not, this year many are still not doing the review of their withholdings and may end up in the same boat next April.
Plan ahead and hopefully next April will make you happy and not frustrated.