Brett_Cameron
Thinks s/he gets paid by the post
The IRS is dramatically changing the Form W-4 and the Employer methods for determining withholding amounts for 2020. They have published drafts of Form W-4 and Publication 15-T.
Background:
I am retired and receive both pension and Social Security. My Spouse receives Social Security. In the past, I have only had Federal Tax withheld from my pension to cover my estimated tax liability. My estimated tax liability is from a home-grown spreadsheet and is very accurate for my use. Up until now, I used my estimated tax liability and the previous employer withholding methods to figure out what to put on the W-4 for my pension. This has worked very well for many years.
The new method for 2020 and going forward hides all of the formulae from the taxpayer (me) and makes it very difficult for me to ensure that accurate withholding is accomplished.
Has anyone else looked at this and do you have any comments?
Background:
I am retired and receive both pension and Social Security. My Spouse receives Social Security. In the past, I have only had Federal Tax withheld from my pension to cover my estimated tax liability. My estimated tax liability is from a home-grown spreadsheet and is very accurate for my use. Up until now, I used my estimated tax liability and the previous employer withholding methods to figure out what to put on the W-4 for my pension. This has worked very well for many years.
The new method for 2020 and going forward hides all of the formulae from the taxpayer (me) and makes it very difficult for me to ensure that accurate withholding is accomplished.
Has anyone else looked at this and do you have any comments?