A finalized 2020 Publication 505 containing guidance for adjusting withholding using the revamped Form W-4 was issued June 26 by the Internal Revenue Service.
Publication 505, Tax Withholding and Estimated Tax, was updated to address the new steps for filling out Form W-4, Employee’s Withholding Certificate. The revised Form W-4 no longer uses withholding allowances and instead relies on tax credits, deductions, and calculations for multiple-job households to adjust withholding.
The publication was not substantially revised from a draft version issued June 17.
The publication provides separate withholding adjustment instructions depending on whether an employee is transitioning to a...