The IRS has issued interim guidance on withholding that provides certain withholding rules for 2018 will remain in effect for 2019. The interim guidance includes information on the Form W-4, Employee’s Withholding Allowance Certificate [Notice 2018-92, 11-26-18].
Highlights of the Guidance
- Forthcoming Forms W-4. The IRS “intends to release a 2019 Form W-4 before the end of 2018 that makes minimal changes to the 2018 Form W-4.”
- Redesign postponed. The Form W-4’s major redesign will be postponed until the 2020 version.
- ‘Withholding allowance.’ The 2019 Form W-4 and the computational procedures in Publication 15 (Circular E), Employer’s Tax Guide, will continue to use the term “withholding allowances” and related terminology. For 2019, the value of one withholding allowance will be included in the 2019 Publication 15. (The value of one withholding allowance for 2018 is $4,150.)
- Using the IRS withholding calculator. The IRS intends to update the regulations to allow employees to use the withholding calculator or Publication 505 to determine which entries to make on Form W-4 in lieu of completing certain schedules included with the form.
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