Here’s a New, Much Better W-4
If I had to rank tax forms from worst to best, W-4 would come out on top. The worst part of any new job is when you fill out this stack of paperwork on the first day and know that you are saving the W-4 until the last day because you just don’t know what to do with it.
But no more, my friends. The IRS recently redesigned the W-4 to make it simpler. Here’s the best part: You no longer have to guess how many benefits you should write down.
According to the IRS guide to the form, this will make it easier to match your withholding income against your tax liability, which means you will reduce your chances of getting a large refund when filing your tax return.
The new form has five steps. For many people, you will only need to fill out step 1, your personal information, and step 5, by signing the form.
If you have two or more jobs, you will want to use a worksheet (it comes with the form you can see here ) or use an online evaluator to determine if the hold is correct. (I’ve tried using the retention estimator, and I can assure you it’s quick and easy.)
If you have dependents, you will require them in step 3.
If you have other non-work income, or want to list your deductions instead of the standard deduction, you will complete step 4.
That’s all! No zeros and ones, no tolerances to keep your fingers crossed and guess.
If your general mood right now is “Please don’t ever worry”: You only need to complete a new W-4 if you are starting a new job with a new employer.