The IRS released a new version of the Form W-4 to help taxpayers check their 2018 tax withholding following passage of the Tax Cuts and Jobs Act (TCJA) in December, 2017. The Form W-4, Employee’s Withholding Allowance Certificate, is used in particular by employees to indicate the amount of withholding from their paychecks. Because the TCJA made numerous changes in the tax code, including increasing the standard deduction, the removal of personal exemptions, the increase in the child tax credit, as well as modifying other deductions, tax rates and brackets, the IRS is encouraging all individuals to review their current W-4 on file with their employers, and make necessary changes, if indicated. To assist individuals with this process, the IRS provides a Withholding Calculator, together with a set of FAQs, on its website.
The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.
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