Following a recent meeting between the Treasury Department, the IRS, and selected stakeholders, rumors claim that the 2019 Form W-4 rough draft to be filed in 2020 could be ready as early as May 31st.
Last year taxpayers were resistant to the 2019 Form W-4 form after its release in the summer. It was too complicated for taxpayers to figure out without serious training. There were also many questions revealing private information making employees uncomfortable. On September 20th, the IRS announced that they would be postponing the 2019 Form W-4.
The new Form W-4 to be filed in 2020 is intended to improve accuracy, transparency, and simplicity in an overall positive experience. Later in 2019 information regarding the 2020 forms should be released to employers and payroll processors to ensure a smooth transition process.
A few changes that will be on the new Form W-4 might include non-wage income, tax credits, additional incomes, and elimination of the number of allowances.
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