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Most of my W-2 clients have transitioned into 1099-R clients (and sometimes 1310 clients). So I’m probably the last to have noticed this. There may have been news stories about it last month, that I ignored.
My client who regularly received $1,700 federal refunds, because he was claiming “Single and zero” on his W-4, came up owing $82 to IRS for 2023. His withholding had decreased substantially, but he says he took no action to cause that. I looked at the new Form W-4, and noticed that withholding allowances are no longer a thing. You have to jump through some hoops if you are married, or have dependents. Enter some dollar amounts from Page 3. And then payroll clerks (or software) have to learn a new system.
Are others noticing this change? How are you and your clients dealing with it?