IRS W-4 Form 2022 – 2022 W4 Form – The Form W-4 received a total overhaul in the year 2020. It now has less lines to fill in. The way that you fill out the Form W-4, also known as the Employee’s Withholding Certificate, determines how much tax your employer is withholding from your pay. Your employer sends the money that it withholds from your paycheck to the IRS and includes your name and Social Security number.
Your withholding is a part of the annual tax bill that you determine when you file your tax return for that previous 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?
IRS W-4 Form 2022, The W-4 Form is an IRS document you complete for your employer to determine how much should be withheld from your paycheck to pay federal income tax, and sent to the IRS. Making sure you are accurate in filling out your W-4 will help you avoid overpaying taxes throughout the year, or having to pay a large balance during tax time.
Most of the time, the beginning of the day you start a new job, many taxpayers fill out a tax form, and then ask “what is a w-4 tax form?” If this is your case, you’re certainly not alone. Many taxpayers don’t understand the meaning of a tax form W-4 is, or how it impacts their taxes. You might take the guess that you’ll need to complete the form or perhaps a trusted friend gives you some advice.
What’s Changed in the W-4?
IRS W-4 Form 2022 – The W-4 was revised to stop claiming personal allowances. A W-4 had previously included an Allowances Worksheet for Personal Use that helped you determine how many allowances you could claim. Your employer will deduct less of your wages when you request more allowances. However, a lesser amount of allowances can be claimed and your employer will withhold more.
Prior to the Tax Cuts and Jobs Act (TCJA), allowances were not tied to dependent or personal exemptions claimed on tax forms. The standard deduction then doubled in the wake of the Tax Cuts and Jobs Act (TCJA) in which personal and dependent exemptions were removed.
What If I Start with a New Job?
As mentioned above, when you get a new job each employee should fill out an updated Form W-4. It doesn’t alter the amount of your pay that goes to Social Security and Medicare. These are fixed sums.
If you do not fill out a new W-4, you employer will definitely still give you a paycheck but they will also withhold your income taxes at the highest tax rate applicable to single filers with no other adjustments.