Federal Tax, Tax

Update on Forms W-4

The IRS is informing employees that they can use Forms W-4 printed before Dec. 31, 2019, even though those forms list the now out-of-date 10%-of-AGI medical expense deduction. The Taxpayer Certainty and Disaster Tax Relief Act, which was signed into law on Dec. 20, 2019, extended the 7.5% medical expense deduction threshold for tax years beginning after Dec. 31, 2018 and before Jan. 1, 2021. The IRS states that the discrepancy will affect only a small number of taxpayers. The revised Form W-4 became available on Dec. 31, 2019. Click here for more information. Contact us with questions. © 2020

“2020 Form W-4 Revised for Recent Law Changing the Medical Expense Deduction Floor to 7.5 Percent for 2020.” Internal Revenue Service, January 16, 2020. https://www.irs.gov/forms-pubs/2020-form-w-4-revised-for-recent-law-changing-the-medical-expense-deduction-floor-to-7-5-percent-for-2020.