An exception applies to employees who are NRA.

If an employee hired after 2019 does not submit a valid Form W-4, tax is withheld based on Single filing status with no adjustments to income or taxes.

A Deductions wage adjustment has been added to decrease taxable wages for withholding purposes based on the amount entered in step 4b of Form W-4.

An Other Income wage adjustment has been added to increase taxable wages for withholding purposes based on the amount entered in step 4a of Form W-4.

A Dependent tax credit has been added to decrease the tax amount withheld based on the amount entered in step 3 of Form W-4.

$12,900 for employees who claim Married Filing Jointly and do not check the box in step 2 on Form W-4 and.

$0 for employees who check the box in step 2 on Form W-4.

The exemption amount is no longer based on the number of withholding allowances claimed.

For withholding based on a 2020 or later Form W-4, the annual amount to add to a non-resident alien's (NRA) taxable wages prior to calculating withholding is $12,400.

Otherwise, the standard tax tables are used. If box 2 is checked, tax is calculated using the higher tax tables.

In addition to the marital status, the checkbox on step 2 of Form W-4 determines which tax table applies.

Head of Household will be coded as filing status HH. Married Filing Jointly will be coded as filing status MJ. Note: For 2020 or later, Single and Married Filing Separately will both be coded as filing status MS. Employees claiming Head of Household will use the Head of Household tax tables. Employees claiming Married Filing Jointly will use the Married Filing Jointly tax tables.

Employees claiming Single or Married Filing Separately will use the Single tax tables.The following changes apply based on Form W-4 2020 or later: Employees will be required to submit a new Form W-4.

A new Form W-4 must be filed for CY 2020.Īny Form W-4 in the old format in future or suspense status as of December 30, 2019, was deleted. A Form W-4 filed for the prior year does not extend tax exemption into CY 2020. Effective Pay Period (PP) 04, 2020, employees who claimed total exemption for CY 2019 and who have not filed a new Form W-4 for CY 2020 will have Federal taxes withheld as single taxpayers with zero withholding allowance. Employees hired after 2019 cannot submit a Form W-4 dated prior to 2020.Įmployees who had no changes to their Form W-4 by December 27, 2019, will default to their current Form W-4 on file.Įmployees who intend to claim total Federal tax exemption for the calendar year (CY) 2020 must submit a new Form W-4 prior to February 16, 2020. Note: Form W-4 2020 or later applies to all employees hired after 2019, even if no form is submitted. The tax is calculated differently based on whether the 2020 or later Form W-4 applies or whether the Form W-4 prior to 2020 applies.There are six tax tables: three standard (Single, Married Filing Jointly, and Head of Household) and three higher (Single, Married Filing Jointly, and Head of Household) tax tables. Married Filing Separately and Married Filing Jointly are now valid marital statuses. The valid marital status values will change for IRS Form W-4 submitted 2020 or later.The United States Federal income tax withholding formula includes the following changes: Federal Income Tax Withholding, dated January 10, 2020, to add information regarding Internal Revenue Service (IRS) Form W-4, Employee's Withholding Certificate, in the suspense file and future files, information for employees with no change to their Form W-4, and information on status codes for Forms W-4 on file prior to 2020. This bulletin supersedes TAXES 20-01, U.S. Federal Income Tax Withholding | National Finance Center

Us federal tax brackets 2020