Draft W4 for 2019

[Jack from Ohio]

I tell everyone that asks, "Single with Zero exemptions."  if they are high earners, I say "Have an additional $100 per pay period as well."  "We will revisit this at 2018 tax preparation time, and adjust accordingly."  

I would rather answer the question about why the refund is so be, than the opposite question.

Same for all that inquire.  No muss, no fuss.  

I did NOT create the massive boondoggle of tax laws we are having to fight.  "Call your Senators and your Congressman."

[Medlin Software, Dennis]

8 minutes ago, Jack from Ohio said:

I did NOT create the massive boondoggle of tax laws we are having to fight.  "Call your Senators and your Congressman."

Yep, back in the old days, most were receiving large refunds (those who were filling out their form "straight up").  A few politicians later, the ones who made changes to make net pay appear bigger as an election point, and we have many who are cutting it close, or going negative, with a "straight up" W4 form.

Those that actively manage their withholding, at least honestly, will always come out fine (or as desired).  The ones who just go with the standard entries, they are the ones who are at risk, although less likely so starting with the 2019 form (since many will not delve into things like child credits).

The recent ones I dealt with are KY (lowered withholding, raised sales tax, for a net tax increase - since no government ever takes a pay cut) and ID, which altered their withholding calculations to make "allowances" mean child tax credits, without requiring employees to provide an updated W4 (so many are now effectively taking a child tax credit for self and spouse), and the ID "W4" instructions actually create a form which is invalid for federal use, even though it is what ID suggests...

But, as I get older, I accept what will be will be, and understand complication is good for me.

[Abby Normal]

So easy! (Fun note: allowances are still part of the calculation.)

  Figure the income tax withholding using the
result from step 3 as wages, with 2 (single or married filing
separately) or 3 (married filing jointly or head of
household) allowances for the filing status on line 3 of
Form W-4.
Step 5.  Reduce the income tax withholding result from
step 4 by the income tax credits per pay period figured in
step 1 for line 7 of Form W-4. Do not reduce withholding
below zero.
Step 6.  Separately figure the income tax withholding on
the amount, if any, from step 1 for line 8 of Form W-4. (As
in step 4, depending upon the withholding method, the
employer may need to adjust this amount by the value of
the withholding allowances as described in Pub. 15 or
Pub. 15-A.) (Line 8 is your other job. So employer has to assume you're having proper taxes withheld.)
Step 7.  Subtract the income tax withholding result from
step 6 from the result in step 5, to figure the amount of
income tax withholding per pay period. (Then reduce your withholdings by the assumed amount withheld from other job.)
Step 8.  Add the amount, if any, from Form W-4, line 9,
to the income tax withholding per pay period figured in
step 7. This is the amount of income tax to withhold per
pay period for the employee.