The IRS is poised to make a big change to the way tax withholding is calculated–and it might cause you a big headache. The new system will be driven by a tax form WAY more complicated than the old W-4.
The agency plans to release a new W-4 form that better incorporates the changes ushered in by the new tax law so that the amount held back for taxes in each of your paychecks is more accurate.
The agency’s goal: A taxpayer shouldn’t owe or be owed come tax time.
But the changes won’t be simple, says Pete Isberg, head of government affairs at ADP, the payroll and human resources company.
Filling out the new form will be a lot like doing your taxes again.