Experts warn of more complex W-4 form
Apr 10, 2019 1:30 pm
Janna Herron is reporting for USA Today on the new W-4 form, which will change how the Internal Revenue Service calculates the amount of federal tax to be held back from a worker's paycheck, beginning in 2020. According to Herron, early indicators are it will not be an easy form to complete. Pete Isberg, head of government affairs at payroll company ADP, says the new form will more like doing your taxes. “It’ll be a much bigger pain,” he says. “The accuracy will be 100 percent, but the ease-of-use will be zero.” He said the draft form he examined "...looked a lot more like the 1040 than a W-4." Instead of claiming a certain number of allowances based on exemptions, the new form asks workers to complete the annual dollar amounts for non-wage income, itemized deductions, tax credits expected for the coming year, and more. In addition to concerns about its complexity, the tax and payroll community have cited privacy issues with the new W-4 because it asks for household income and other details that workers might not want to share with an employer. Another draft version of the form is expected by May 31, according to the IRS. The agency is soliciting public input on that version. “We encourage taxpayers to take advantage of that opportunity and send us comments on the redesign,” said an agency spokeswoman. A second draft will be released in late summer and the final version will be available by the end of the year, in time for the 2020 tax year. Read the full story in USA Today.