rbynaker
Level 13
02-18-2024
06:06 PM
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The W-4 change happened in 2020. The "new and improved" form was redesigned to give taxpayers more money in their paychecks rather than using the IRS as a savings account. There was an informal transition period as payroll software slowly got updated/reprogrammed. Most employers within the past couple years required employees to fill out new W-4 forms as their software no longer supported the "old" calculation.
I'm also seeing these transitions with the "new and improved" W-4P so it'll hit your 1099-R folks as well. You know, just in time for personal exemptions to come back in 2026, right?