New Tax Rule Change Could Have Impact On Your Take-Home Pay
Taxes and the IRS. Not many people enjoy going through the pains with filing taxes and get your forms in line. A new tax reform that was introduced last year caused people to have lower refunds than expected. It had to do with changes to withholding tables.
According to WKBW, the IRS is now looking to change its W-4 form.
The proposed change is expected to be implemented by November of this year and will require employees to report all income, including any outside jobs. This new W-4 form will be submitted to your employer.
It is a concern, said Tim Eliason, EG Tax Service in Tonawanda, who explained that employees will be telling employers about other sources of income that they "may not want to disclose or want them to know about."
People who fail to have the proper amount withheld from their income could be subject to fines, explained Eliason.
Questions still remain how it will impact people who have already submitted their W-4 Employee's Withholding Certificate to their employers.
The IRS posted about the changes on their website.
"The Treasury Department and the IRS are working to incorporate changes into the Form W-4, Employee’s Withholding Allowance Certificate, for 2020. The current 2019 version of the Form W-4 is similar to last year’s 2018 version.
The IRS is working closely with the payroll and the tax community as it makes additional changes to the Form W-4 for use in 2020.
For the current 2019 tax year, the IRS continues to strongly urge taxpayers to review their tax withholding situation as soon as possible to avoid having too little or too much withheld from their paychecks. To perform a quick “ paycheck checkup ” use the IRS withholding calculator.
Read the full story at WKBW.