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Discussion Starter · #1 ·
The new (2020) W4 is different. Instead of entering 0-99 exemptions to change your tax witholdings up or down, now you enter a dollar amount based on formulas and charts.

I tried it last month and apparently did it wrong, I did the equivelent of changing it to "0" which increased my taxes paid. Ug. That was the opposite of what I was trying to do.

There's not much info on the web. Yes there's basic dumbed down "here's how" YouTube videos but they don't actually explain anything or actually go over the steps.

What is the new equivelent of filing "99"? I can't find that answer anywhere.

It used to be very simple to adjust your W4. Not so much anymore!
 

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Speaker Pelosi has promised to fix this and to make all tax related issues much simpler. The new 1040 form, for example will read as follows: "Enter gross income earned: xxxxx, The amount entered above is your Federal Tax for the year. Sign and date below. "
 

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l'Italia s'è desta
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I just looked at the form and instructions, and it seems pretty straightforward if you’re telling the truth about your earnings and deductions.

Am I missing something?
 
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l'Italia s'è desta
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It wasn't broke why fix it?
That I can’t answer, as I had nothing to do with its revision.
It could be that the older form was easier to use to circumvent the withholding requirements and violate the tax law, but I don’t know for sure.
 

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Discussion Starter · #8 ·
Trump pushed thru tax reform in 2017, it was implemented Jan 1, 2020. Raising the standard deduction and eliminating some writeoffs was part of the need for a new W4 formula. Supposed to "simplify" things.

Sure, it "looks" easy to fill out. Go ahead and try it and see how it changes your witholdings... Mine got messed up to my detriment.

Still can't find the answer to this question: How do I change my witholdings to pay zero taxes, like claiming "99" exemptions on the old form? Nobody seems to know, anywhere.
 

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Still can't find the answer to this question: How do I change my witholdings to pay zero taxes, like claiming "99" exemptions on the old form? Nobody seems to know, anywhere.
Why do you even need to do that?
 

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Speaker Pelosi has promised to fix this and to make all tax related issues much simpler. The new 1040 form, for example will read as follows: "Enter gross income earned: xxxxx, The amount entered above is your Federal Tax for the year. Sign and date below. "
LMAO

Yep, that's the way it's headed...
 

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Discussion Starter · #12 · (Edited)
Why do you even need to do that?
Why not? Once I have contributed my estimated tax liability, there's no point in witholding extra just get it refunded.

Also, it's fairly common in some professions to file for zero tax witholdings and/or sell back some sick leave or vacation for certain months, like May or Nov, to have extra cash for summer/Xmas. It used to be very easy to do that 1x or 2x per year every year. I know some guys who pad their Dec paycheck every year by filing zero tax witholdings in Nov plus 3 paid holidays in Nov plus sell back a week or two of vacation plus cash out some unused sick leave plus work some overtime. Their Dec paycheck is fat...

Most people just set it and forget it, but you CAN adjust your witholdings.

Anyways, it's good info to know since anyone who wants to adjust their witholdings from last year, too big/small refund, life events like new job, new baby, marriage, home purchase, etc, has to fill out the new W4.
 

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l'Italia s'è desta
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Trump pushed thru tax reform in 2017, it was implemented Jan 1, 2020. Raising the standard deduction and eliminating some writeoffs was part of the need for a new W4 formula. Supposed to "simplify" things.

Sure, it "looks" easy to fill out. Go ahead and try it and see how it changes your witholdings... Mine got messed up to my detriment.

Still can't find the answer to this question: How do I change my witholdings to pay zero taxes, like claiming "99" exemptions on the old form? Nobody seems to know, anywhere.
It seems to me, if you do it right, you don’t have to keep changing your W4. Only if your monthly income greatly varies can I see a reason for fiddling with it.
 

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Discussion Starter · #14 ·
It seems to me, if you do it right, you don’t have to keep changing your W4. Only if your monthly income greatly varies can I see a reason for fiddling with it.
That's why I used the example of some guys basically doubling their Dec paycheck. Others get bonuses or whatever. It's just an option. They don't "keep changing it", they just change it 1x and then 30 days later change it back. It takes 5 min to fill out the form and fax it to payroll.
 
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