Why is this form so different and how do I fill it out correctly?
Before we get started, check out this super helpful blog post to understand all the 2020 W4 changes.
Now that you have some general knowledge on the changes, lets jump in on how GoCo can help you fill this out.
- Step 1: Filing Status
- This field shouldn't be unfamiliar as it was used in the old W4 as well. To answer this question, you'll want to enter the field that you use at the end of the year to file your taxes. (Aka - What status do you use to file your taxes?)
- Step 2: Your Jobs
- The verbiage on this field will change slightly depending on your filing status. Choose the answer that best fits your current situation (remember, if your situation changes you can update this field at any time).
- Step 3: Income
- For this field, do your best to estimate your (or your families) total income for the filing year.
- Step 4: Additional Fields (may or may not populate depending on your selections above)
- *Qualified Children - how many qualified children (under the age of 17) will you claim when filing your taxes next year?
- *Other Dependents - do you have any other dependents (over the age of 17) you can claim?
- *Claim Dependents - This is automatically calculated by GoCo. We multiply Qualified Children by $2,000. Then we multiply Other Dependents by $500. Finally, those 2 values are added together.
- Other Income
- If you want tax withheld for other income you expect this year that won’t have withholding (e.g. interest, dividends, retirement income), enter the amount of other income here. If this doesn't apply, enter in 0.
- If you expect to claim deductions other than the standard deduction and want to reduce your withholding, use the Deductions Worksheet on page 3 and enter the result here. If this doesn't apply, enter in 0.
- Additional Withholdings
- Enter any additional tax you want to withhold each pay period. Please note that this is a dollar amount. So, if you $50 withheld additionally from each check, enter in the value "50".
For claiming dependents, what happens if I enter a different amount than the auto-calculated amount?
GoCo will show you a warning if the value you enter does not match the correct IRS calculation result. It's fine if you want to use a different amount, however, this could cause to withhold too much or not enough for your Federal Tax Withholdings.
Why should I fill out a new form?
Due to a tax reform, federal taxes will be calculated slightly different for the 2020 tax filing year. If you keep your old W4 values from the previous year, you could possibly owe money to the IRS when you file your 2020 taxes.
If you have any additional questions, or need support, please feel free to email us at email@example.com.