2022 W-4 Forms – 2022 W4 Form – The Form W-4 has undergone a major overhaul in the year 2020. It now has fewer lines to fill out. The way you fill in Form W-4, also known as the Employee’s Withholding Certificate, will determine the amount of tax your employer is withholding from your pay. The employer will then send the tax it withholds from your paycheck to the IRS along with your Social Security number.
Your withholding is a part of the annual income tax bill that you compute when you submit your tax return for that year. This is the reason that the Form W-4 asks for identifying information, such as your name, address, and Social Security number.
What Exactly is a W-4 Form?
2022 W-4 Forms, W-4 forms are the IRS forms that you complete for your employer. This form allows your employer to decide how much should be withheld on your paycheck in order to pay federal income tax. This form is given to the IRS. You can reduce the amount you pay in taxes or having to pay a huge amount of tax due when you fill out your W-4.
The typical first day of a brand new job is when a lot of taxpayers fill out a tax form and inquire “what is a w-4 forms?” If this is your case, you’re certainly not alone. A lot of taxpayers aren’t aware of what a W-4 tax form is or how it affects their tax obligations. Perhaps you make a guess at how to fill it out or maybe a colleague gives you some advice.
What Changed on the W-4?
2022 W-4 Forms – The latest version of the Form W-4 eliminates the option to claim personal allowances. Prior to this an W-4 was accompanied by Personal Allowances Worksheets to assist you in determining the allowances you are entitled to. The more allowances you claim and the lower your employer could withhold from your salary; the less allowances you claimed in the first place, the more the employer will withhold.
Prior to that, allowances were loosely connected to dependent and personal exemptions listed in your tax return. The standard deduction then increased by a factor of the Tax Cuts and Jobs Act (TCJA) which also saw the exemptions for dependents and personal exemptions were eliminated.
What Should I Do If I Take On with a New Job?
Every employee must fill out an official W-4 prior to starting a new job. This doesn’t affect the amount of your pay that will be paid to Social Security or Medicare. These are guaranteed amounts.
If you don’t fill out a new W-4 your employer will still give you a paycheck however they will also withhold income taxes at the highest rate for single filers, with no other adjustments.