The new federal tax law, which went into effect for 2018 tax returns filed in 2019, is so ridiculously difficult and complex, that our old friend the W-4 form — which is used to help W-2 employees calculate the amount of taxes that should be withheld from each paycheck — is now a giant monster that overwhelms even those of us with countless hours of continuing education on the tax code.
Luckily, my favorite payroll company, Gusto, has put together the best step-by-step guide I’ve seen on accurately filling out the new form, so you can hopefully get the correct amount withheld from each paycheck and not owe a ton of money come tax-time.
That said, even in their blog they recommend using the IRS Tax Withholding Estimator instead, because the W-4 is so arduous at this point. We’ve gone from a half-page easy-peasy form that anyone can follow, to a monster — but if you want your taxes withheld properly, you’ve simply got to do one or the other (the new W-4 or the online withholding estimator).
In any case, thanks for making this a little easier on folks, Gusto! You explained it better than I’ve been doing, anyway.
Source: 2020 W-4 Guide: How to Fill Out a W-4 This Year | Gusto