Summary of changes to the IRS W-4 for ‘23

Compliance
Written By Alex Santos

The Form W-4 is an important document that employees fill out to let their employers know how much federal income tax they want withheld from their paychecks. The form has been updated for 2023 by the Internal Revenue Service (IRS) to reflect some changes in the tax law and withholding calculation. Here are some of the main changes to the Form W-4 for 2023 that you should know:

- The references to the Tax Withholding Estimator, an online tool that helps you determine your withholding amount, have been removed by the IRS. This is because the tool is no longer available on the IRS website. Instead, you can use the worksheets and tables in the Form W-4 instructions to calculate your withholding.

- The amounts for the Deductions Worksheet, which helps you estimate your itemized deductions or standard deduction for 2023, have been updated. The standard deduction amounts for 2023 are $13,850 for single filers, $27,700 for married filing jointly or qualifying surviving spouse filers, $13,850 for married filing separately filers, and $20,800 for head of household filers.

- The text in Step 2(c) of the Form W-4, which is a checkbox that you can use if you have multiple jobs or a working spouse and your combined income is less than $200,000 ($400,000 if married filing jointly), has been clarified. The checkbox allows you to use a simpler method to calculate your withholding without using the Multiple Jobs Worksheet or the Tax Withholding Estimator. The text now explains that you should use this checkbox only if both you and your spouse (if applicable) are using the 2023 Form W-4 and have similar pay at all jobs.

IRS Form W-4

These are some of the changes to the Form W-4 for 2023 that may affect your withholding amount and tax liability. You should review your Form W-4 every year and update it if necessary to reflect changes in your personal or financial situation. You can find more information and instructions on how to fill out the Form W-4 on the IRS website.

Alex Santos
As Managing Member of Collabor8 Learning, my role is to build and execute learning and development strategies for organizations seeking to improve the return they are getting from their training programs. We focus on four core areas: performance analysis, instructional design, e-learning development, and learning management. As a hybrid HR/instructional design consultancy, Collabor8 Learning partners with your team to leverage today's training technologies to increase the productivity of your people. I am a senior human resources and training executive with over 17 years of progressive experience. My work in private industry has focused heavily on the development of learning and development systems that transform employee performance from ordinary, to remarkable. I accomplish this by combining organizational development strategies and tactics to blended learning programs with line of sight alignment to clearly defined performance goals. Additionally, I launched Miami Payroll Center in conjunction with my brother and sister-in-law in 2004 to meet the payroll needs of small to mid-size organizations. Our consultative approach to guiding new entrepreneurs as well as more seasoned business owners in alleviating the pain of payroll processing has created a very successful and growing payroll processor in the market. Specialties: Instructional Systems Design, E-Learning, Learning Management Systems, Payroll, Organizational Development, Employee engagement, HR Strategic Planning, Talent Acquisition & Management, Leadership Development, Coaching & Mentoring, Employment Branding Proposition & Positioning, Workforce Planning, Performance Management, and Leadership Development.
https://www.bynimble.com
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