IRS pulls back 2019 Form W-4 changes

The IRS will not be making major changes to the 2019 version of Form W-4, Employee’s Withholding Allowance Certificate, after all, according to the newly released draft version. The 2019 version of Form W-4 will be similar to the 2018 version. Earlier this year, the IRS released a draft version of the 2019 Form W-4—along with 10 pages of instructions—that would have radically altered withholding calculations for both employers and employees (see Payroll Management Guide Report Letter 1520/2559, June 12, 2018). Among other changes, the draft form called for employees to provide to the employer dollar amounts for nonwage income and deductions to be used in withholding calculations. The new draft version is reproduced in this Report Letter on pages 12-15. (Draft 2019 Form W-4, Employees Withholding Allowance Certificate, October 12, 2018.)

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