Where did they go??

[Corduroy Frog]

The tax withholding tables??   Where did they go??

I haven't had occasion to use them in a while, but looking at the old familiar "Circular E - Pub 15" - they're not there!!  There is a link to another website offering an Excel Spreadsheet to "assist" and a percentage method chart.

However the chart is multiple depending on whether the W-4 is issued in 2020 or not.  (I can't think of a single penny of tax liability for this year that would depend on when a W-4 was executed).  And there is no provision for a withholding allowance.  In other words no difference between M-1 and M-5.  Yes, I know the personal exemptions are no longer part of the tax calculation, but there are huge credits between a M-1 and M-5.

Obviously, this goofy train has left the station and I wasn't on it...

Wazz going on?  Better yet, where izzit?

 

[Max W]

The tax and withholding tables are in Pub 15-T

https://www.irs.gov/publications/p15t

[Corduroy Frog]

Thanks Max.  They are in fact in Pub 15-T but are double-barrelled based on something that doesn't affect their liability one whit.  Gone are the days of plain English.

[Lion EA]

Form W-2 was redone.

[Catherine]

11 hours ago, Corduroy Frog said:

Gone are the days of plain English.

If you ever need to read tax treaties, pray you get an OLD one.  Those ARE written in plain English and are actually pretty easy to work your way through!  The more-recent ones... well, let's just say to clear your calendar, and have the bottle of ibuprofen at the ready!

[Corduroy Frog]

13 hours ago, Lion EA said:

Form W-2 was redone.

Thank you Lion, I think you mean the W-4.  And indeed this happened (in fact they've been messing with the W-4 for a couple years - actually had a version which asked how much your spouse made).  No one will have their 2020 tax liability changed because the W-4 was redesigned, but somehow they might expect someone to wish executing a new W-4.  Like the ancient text from the Bible "straining at a gnat and swallowing a camel."  All of us, including the IRS, would be better off spending time opening their mail which has been piling up.

Thank you Lion and Catherine for your interest in this wacky subject.  This group is wonderfully helpful.

[Lion EA]

Yes, I meant the W-4.

Where the old W-4 relied on exemptions, unless a taxpayer filled out all the worksheets re second job, itemizing, etc., the new W-4 doesn't make use of exemptions, unless the taxpayer goes into the middle sections to give more detail about income and credits and such. So, taking the W-4 info to look up on the tax tables will rely on different information and need different tables.

[Max W]

Drake software has a worksheet that does a nice job of figuring out the W-4 allowances.

 

[Lion EA]

Frog, if you're looking at it for an employer, the IRS does have the 15-series of Pubs and offers a spreadsheet that's not bad for small employers. Employers could have a combination of old and new W-4s from their employees.

If you're looking at it for an employee. He doesn't have to redo his old W-4 if it's accurate for him. For a new job or to change his withholding with his employer, he does need to use the new W-4 now. The IRS's online withholding calculator is improving. And, your software may have a good W-4 planning worksheet.