2020 tax changes could hit your pockets, are you affected?

Consumer

Columbus, Ga (WRBL)- The new 2020 W-4 form could have an impact on your tax returns if you started a new job after January 1, 2020.

This year, the first major update to the federal withholdings form since 2017 takes effect. The old form focused on how many allowances you had, but now it focuses on the number of dependents you are responsible for.

“The difference is because in 2019 the W-4 form had personal exemptions and dependents, in 2020 you don’t have any personal exemptions or dependents so you have to have a new form.” said local tax preparer Roy Purvis.

On step three of your 2020 W-4, you will no longer have the option for personal exemptions, instead you will be specifically asked how many children and dependents you have, and then multiply them by the federal tax credit.

“Well what that is doing is the only thing you have in 2020 is tax credits, and this is a child tax credit so if you have a child under 17 then you will multiply by 2,000 and that will give you a smaller deduction, because it will add that deduction into your withholding.” said Purvis.

Unless you have changed jobs this year or had a change in your personal financial situation you can still file the 2019 W-4 form, said Purvis.

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Recent Updates

More 7 Day Forecast

More Political Stories

More Politics

Trending Stories

Don't Miss

Trending Stories