IRS Releases 2018 W-4

Following passage of the the Tax Cuts and Job Act in December 2017, the IRS has issued a new form W-4 for 2018. The IRS also released an updated tax withholding calculator on IRS.gov that employees can use to help determine their 2018 tax withholding. The IRS is not requiring employees to provide new W-4’s to their employers, but Acting IRS Commissioner David Kautter said in a statement, “Following the major changes in the tax law, the IRS encourages employees to check their paychecks to help ensure they’re having the right amount of tax withheld for their personal situation.”

The Tax Cuts and Jobs Act made changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the child tax credit, limiting or discontinuing certain deductions, and changing the tax rates and income brackets.