New job

[Rez3]

My new employer said they could not advise me on how to fill out the W2.  In the past, before 2020, I would just put either a 1 or a 0 because I'm single and have no dependants.  My employer said things have changed, regarding the W2 after 2020, and now the government wants me to keep track and take out my own money or deductions.  Is this true?  How do I do this?

[BettieG]

Hi!  Thanks for your question!  It's a great one.

First, if you work for an employer for whom you're paid a salary, it is the employer's responsibility to withhold taxes from your paycheck and to provide you with a Form W-2 at the end of the calendar year, which will tell you how much income you made and how much was withheld in taxes, and other benefits.

It's the Form W-4 which you, the employee, fill out and provide to your employer to tell the employer how much should be withheld from your paycheck in taxes each pay period.  

There are calculators that can be used to help you know how to fill out the W-4.  Here is one you can use:  W-4 Calculator for 2024

I suggest you go through the calculator and then print out a blank W-4 (to enter the results) at the bottom of the calculator page and provide it to your employer.

Unless you are self-employed, your employer should then withhold the appropriate amount of tax from your paycheck each pay period according to the information you provide on the Form W-4.

I hope this is helpful!

[evelynm]

Your new employer needs to know how much money to withhold from your paycheck for federal taxes and is required to remit those accordingly.    To determine the withholding use TurboTax's W-4 Withholding Calculator.

Your employer is likely referring to a change the IRS made which replaced the method for determining the amount to withhold beginning in 2020 to reduce the complexity of calculating how much to withhold from each paycheck.  This relates to the W-4 as the W-2 is your year end statement of earnings and withholdings.

Here is a link for further details.  https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-a-w-4-form/L2NapDzX2

[SusanC6]

The Form W-4 changed as the Tax Cuts and Jobs Act enacted in 2017 removed personal exemptions, increased the Standard Deduction, and made the Child Tax Credit available to more people.

The W-4 was changed in 2020 to take into account the law enacted above.

Prior to 2020, Form W-4 only required you to input the number of allowances you were claiming, and any additional amount you wanted withheld from your paycheck.

 The new Form W-4 has 4 Sections.

1. Personal information, including your filing status
2. This section is used if you have work multiple jobs at the same time or are married filing a joint return and both you and your spouse are employed.
3. Information on dependent you are claiming on your return (children or qualifying relatives)
4. Other Adjustments.  This section will allow you to consider any other income or deductions and additional withholding from each paycheck.

You have indicated that you are single and have  no dependents.  If you only have one job, then you would want to complete Section 1 and possibly Section 4 if you would have other income and deductions affecting your return.