Tax Withholding Forms:
The IRS has announced significant improvements to the IRS Form W-4, Employee’s Withholding Certificate, beginning in 2020. The new form and revised withholding calculations could affect your tax withholding and year-end refund or tax due amounts when you file your annual income tax return.
Unless you would like to make changes for 2021, you are not required to submit a new Form W-4. If you do not submit a new Form W-4, withholding will continue to be based on the most recent Form W-4 that you provided. However, even if your tax situation has not changed, we recommend that you perform a “paycheck checkup” to see if you need to adjust your current withholding. To conduct the checkup, use the IRS’s Tax Withholding Estimator (www.irs.gov/W4App). To effectively use the estimator, it is helpful to have a copy of your most recent pay stub and tax return.
If you decide to complete the 2021 Form W-4, please read the instructions that are included with the form. You must complete Steps 1 and 5. Steps 2, 3, and 4 are optional, but completing them will help ensure that your federal income tax withholding will more accurately match your tax liability.
•Step 1 is for your personal information.
•Step 2 is for households with multiple jobs.
•Step 3 is used to claim tax credits for dependents. This REDUCES the amount of tax withheld.
•Step 4 is for other adjustments (additional income such as interest and dividends, itemized deductions that exceed the standard deduction, and extra tax you want withheld). This INCREASES the amount of tax withheld.
•Step 5 is where you sign the form.
More details and information available at the following link - https://www.yeoandyeo.com/wp-content/uploads/The-2020-Form-W-4-Whats-Your-Situation.pdf
If you have any questions, please contact 810-591-8212 or email firstname.lastname@example.org