The Floor is Low-er

This is an update regarding Form W-4 "Employee's Withholding Certificate". IRS finally released the revised 2020 Form W-4. The new form has a number of changes:

First, the new medical expense deduction floor was lowered to 7.5% down from prior taxable years of 10%. Public Law 116-94, Division Q, Section 103 changed the medical deduction. Second, you no longer have to determine the number of deductions as was previously the case. Third, estimated withholding is now based (a) tax payers filing status (b) number of dependents being claimed and (c) other adjustment requested to be withheld.

It is advisable that for a more accurate calculation of the withholding, use the Tax Withholding Estimator which can be found at: www.irs.gov/W4App