馃攳
Major W-4 Changes Coming! (W-4 2020 Explained & Privacy Concerns) (W-4 Tax Form 2020) - YouTube
Channel: Money and Life TV
[0]
well what's up everybody! how you doing I
got some major changes to discuss with
[5]
you guys in terms of the w-4 the IRS has
gonna be tinkering with the w-4 and big
[11]
changes are coming and they're coming
starting in 2020 as its planned at the
[16]
moment and so in this video I hope to to
share shed some light on what changes
[21]
you can expect and how you might start
to prepare for these changes my name is
[26]
Mike the CPA and on this channel here on
money in life TV we make videos that
[30]
cover finances investing taxes and more
if you haven't already subscribe to the
[35]
channel now might be a good time because
as more information is released on this
[40]
and the changes start to come out on the
w-4 I'm going to be sharing more and
[44]
more information about it and I hope to
help eventually help you tackle it down
[49]
the line now I already have a very very
detailed video on w-4 on the form how it
[56]
works how withholding works and all that
good stuff and it's one of the most
[60]
technical videos I've ever produced on
this channel I'm gonna link it down
[64]
below check it out if you have a chance
now let's go ahead and let's just start
[68]
talking about some of the changes coming
down the pipeline and why the IRS is
[72]
saying or why the IRS is thinking they
need to change things so if you remember
[77]
if you're back at the end of 2017 in
roughly December 21st 22nd of 2017
[85]
that's when the new tax cuts and Jobs
Act was passed with that came major
[92]
overhaul with our personal income tax
returns now if you remember one of the
[97]
things that went away after 2017 was
personal exemptions
[103]
okay so personal exemptions went away
after 2017 if you're looking at me if
[109]
you're through your phone through our
from your computer screen and you're
[112]
like I don't even know what personal
exemptions are don't worry the only
[116]
thing you need to know is that they're
gone now because there's no longer
[120]
personal exemptions we have to move over
now think of the w-4 look at this w4
[124]
inch screen well if you look at the line
item or the box that talks about the
[129]
number of allowances you want to claim
well that number
[133]
really coincided a lot with the number
of personal exemptions you had and if
[139]
personal exemptions are no longer a
thing and then you have this form over
[144]
here that wants you to claim the number
of allowances based on personal
[149]
exemptions well there's kind of a
problem the the the forms don't really
[153]
communicate anymore so the IRS is
decided they need to do a major overhaul
[157]
on the w-4
and make the w-4 more in line with what
[163]
the new tax forms appear to be our new
tax laws are under the tax forms and
[169]
Jobs Act make sure you cover the privacy
issues people are gonna want to know
[173]
about the privacy issues
don't worry chipper we're gonna cover
[177]
that we're gonna cover that so what the
IRS is looking at doing ladies and
[180]
gentlemen is instead of having a line
item that says personal you know what
[186]
number of allowances you want to claim
they're gonna completely remove that
[189]
that's their plan now we're finally
supposed to get a glimpse of this draft
[194]
form w-4 starting at the end of next
month which is the ma 20 May 31st of
[199]
2019 is when we're supposed to be able
to start to look this up and so you can
[204]
search that by looking up IRS draft
forms w-4 and see if it comes up so
[210]
sometimes they they lag on that so we'll
see but right now the expected draft
[214]
version of this new w-4 is May 31st of
2019 now they were originally going to
[222]
release this new w-4 in this year like
towards the beginning of this year and
[227]
several organizations and people just
spoke out and said wait wait wait wait
[232]
especially the big big payroll companies
are these payroll processing companies
[236]
that do millions or hundreds of
thousands of peoples of you know
[241]
payrolls they said whoa IRS whoa slow
your rolls
[246]
slow your roll because there were so
many new changes with the new tax forms
[250]
that you know these payroll
organizations they they already had had
[255]
to make updates to the withholding
tables because the the average marginal
[260]
tax rate decreased by 3%
they already had their hands full with
[264]
that so they were able to convince the
IRS to delay
[267]
posting that new w-4 until 2020 one of
the new things that the IRS is looking
[273]
for too is proposing for this new w-4 is
gonna be a new line item asking
[278]
employees to enter their estimated non
wage income that is not subject to
[283]
withholding so right now when you go to
work you you earn your paycheck those
[288]
wages are already subject to withholding
so what the IRS wants you to do is now
[292]
report what other forms of income you
have now a simple example would be
[297]
interest income dividend income and but
they're gonna they're probably gonna
[302]
want to know more than that they're
probably gonna want to know well do you
[305]
have real property income do you have
business income there this is what the
[309]
kind of information they're looking for
they want to know what other types of
[313]
income you have that you normally aren't
forced to withhold money on a lot of
[318]
times people pay taxes on those other
forms of income through estimated tax
[322]
payments but the IRS is now wanting you
to basically compile an estimate and
[328]
project all of your taxable income for
the year on this new w-4 form and
[333]
there's privacy issues we're gonna talk
about that in just a second not only do
[337]
they want you to report and estimate all
of your other forms of income but they
[340]
also want to know about what other
itemized deductions and credits you
[344]
might have so they want to know if
you're getting the child tax credit they
[348]
want to know if you're itemizing if you
plan to itemize so basically what you're
[352]
doing as a as an individual as an
employee is they're wanting you to do
[358]
full-scale tax planning based on what
you made in the previous year and want
[363]
you to guess your income on all this non
wage withholding income going forward
[369]
like I said on interest income dividends
rental properties business income maybe
[373]
you have some side hustle going on
they're gonna want you to estimate all
[377]
of that upfront so that basically the
way I see it what they're really really
[382]
doing is they're they want you to they
want their money sooner instead of
[387]
instead of waiting to pay tax on that
money come April 15th they're gonna want
[392]
you to accurately reflect that on this
new w-4
[395]
so they're so that you're withholding
money on this throughout the entire year
[399]
and so they're getting paid they're
really
[401]
getting paid sooner and they're hoping
that the withholdings will be more
[405]
accurate accurate now this is from the
IRS says the Treasury news release said
[409]
that launching the redesign form in 2020
will allow the Treasury and the IRS to
[414]
promptly implement changes to the
withholding system ensure taxpayers have
[419]
a positive simplified experience that is
the biggest load of BS I've read in
[426]
quite some time
now like chipper mentioned earlier let's
[429]
take a moment let's talk about some of
the privacy concerns around this new w-4
[433]
first of all right now when you're done
when you fill out your w-4 you're
[437]
probably of when you give it to your
employer you know you're probably used
[441]
to just giving them the information
based on what you you know how many
[445]
family members you have and this and
that what you're not used to doing is
[449]
telling is basically communicating to
your employer
[453]
hey employer look I have all these other
forms of income now they want you to
[457]
share that with them now the IRS doesn't
care about your privacy
[461]
obviously they care about how that the
main thing for them is how soon can they
[465]
get paid how soon can they collect that
tax revenue but unfortunately with this
[469]
new w-4 it's basically putting people in
a position where if you have some side
[475]
business going on or you have a lot of
investment income now they're wanting
[479]
you to report that information on a w-4
and hand that over to your employer are
[485]
you fricking kidding me this is how
ridiculous this thing is no do you think
[489]
so we I don't know if you've noticed but
I've certainly noticed that in most jobs
[493]
now in most companies this they it's not
so much about your skill it's not about
[499]
your performance necessarily it's all
about perception so think of think about
[504]
this
so think about trying to ask for a raise
[506]
and your employer decides they're gonna
go open their file cabinet and see what
[511]
other sources of income the yurov
already put down on that w-4 and do you
[517]
do you think they're not gonna look at
that I'm pretty sure they are and that's
[522]
controlling impact and this is all my
opinion but I'm thinking they could say
[526]
well Jimmy's got all these other forms
then come they'll be fine or do you
[531]
think they're not gonna look at that and
say oh look he's got a side business
[534]
doing inez trying to work here I don't
know if we like that maybe we should
[538]
maybe we won't bring it up to Jimmy but
we're gonna kind of pigeonhole them and
[543]
put a cap or nerf on its career because
so many people have been outraged by
[548]
this and have been bringing this kind of
issue up with the privacy concerns about
[552]
sharing this data with your employer
there is supposed to be a workaround to
[556]
this so that you don't have to give all
this information to your floor up front
[560]
but you're gonna but and I haven't seen
anything yet I haven't seen in it yeah
[565]
but there's supposed to be some new
online calculator that they're supposed
[568]
to come out with where you can enter
that information all online and and get
[574]
their correct numbers there so that you
don't have to share all of this
[578]
information with your employer I don't
know how it's gonna work yet I'm still
[582]
waiting to see how they're gonna do it
or how that's gonna look but I'm gonna
[586]
be covering this as time goes on and as
I learn and you know more about it and
[590]
once I learn more about it I hope to be
able to help all of you because there's
[594]
millions of people across this country
that this is going to affect myself
[599]
included once I know how to get around
it or if there what ways that we can
[604]
implement to get around this I will let
you guys know w-4 ah thank you for the
[611]
reminder chipper so chipper has been
making some good points about this new
[615]
w-4 is that and one of the besides the
whole privacy thing that's one issue but
[621]
there is a massive massive knowledge gap
when it comes to taxes and so being able
[628]
to knowing even even if you wanted to
get around filling out the w-4 and
[633]
handing that this information over to
your employer and you wanted to use the
[638]
online calculator method you still have
to have a good understanding of taxes
[642]
and wages and you know basically you
would have to know how to do basic tax
[647]
planning now the good news is I've
already put together a video on how to
[653]
project your taxable income and that's
to help with tax planning you know it's
[657]
already on the channel I'm gonna link it
down below and I have a template in
[660]
there that you can implement you can use
for yourself to help project your
[664]
taxable wages now what I'm going to have
to do with that
[668]
as more information comes out on this
w-4 is I plan to update that for other
[672]
categories of income so that I can show
you guys along the way how you might
[677]
look at projecting your future income
going forward and so you can get around
[683]
and this whole privacy issue and still
keep your your other sources of income
[688]
confidential and so I'm gonna I'm gonna
show you guys you know I'm gonna share
[692]
that template with you guys in that
video so check it out and I'll be making
[695]
further updates to this as time goes on
alright ladies and gentlemen I didn't
[700]
make this video to scare you I don't
want to scare you but I just want to
[702]
make you aware of what's coming and some
of the issues around it now I do think
[707]
it's not all bad the only good side is
that if you if you take the time to do
[713]
tax planning for yourself or work with a
professional to do it you're gonna have
[716]
a better understanding of your overall
taxes which you might make so there are
[720]
some positives there of knowing how to
actually project your taxable income
[724]
going forward and knowing where you're
gonna end up tax wise so that's that's
[728]
the good thing the bad thing is like
knowing how to do it so I hope with the
[731]
videos on this channels as you know guys
I do make a lot of videos around taxes
[735]
throughout the year
and I'll definitely plan to continue
[737]
producing videos in that area especially
around this new w-4 so what you can do
[742]
now before as this information as we're
waiting for this information to come out
[746]
is keep your copies of your tax return
especially your most recent tax return
[750]
on hand see what you made last year and
start planning out what you what you
[756]
plan to make in the future going forward
into for 2019 use 2019 as a practice
[762]
year start thinking about it right now
of okay in 2018 I made this much in
[767]
wages in 2018 I made this much in
interest this much in dividends this
[771]
much for my side hustle my eBay business
Etsy business whatever and start
[775]
projecting in 2019 what you think you'll
make by the end of this year that's
[780]
gonna help you get ready it's gonna help
you get in the mindset of what's going
[785]
to be required when it comes to filling
out this new w-4 or working this new
[790]
online calculator that the IRS is
supposed to put out I don't know when
[793]
they're supposed to put that out I have
no idea but I'm gonna be tracking it and
[797]
be following it so like I said look for
the draft version of the form and as
[801]
soon
released I plan to do a video on it I'll
[803]
be looking for it at the end of May so
the end of this month so I'm filming
[807]
this video on April 23rd of 2018 and and
that's when so we're about a month away
[814]
from the release of that form with that
being said if you liked the video make
[817]
sure you drop a like before you leave it
really helps out the channel and helps
[821]
get this information out to more people
definitely please feel free to share
[824]
this with a friend because there's a lot
of people out there in this country who
[827]
have no idea that these changes are
coming and most people have little to no
[831]
knowledge about taxes so I think getting
that giving them a head start on this
[835]
information can really help them out and
like I said earlier be sure to subscribe
[839]
if you have not already to the channel
on money and live TV we're all about
[842]
helping people just like yourself become
fiscally fit and we do that by teaching
[847]
finances investing taxes and more on a
regular basis alright guys I love you
[852]
all thank you so thank you so much for
all the support you've been showing on
[855]
the channel can't believe we're already
at 18,000 subscribers you guys are
[859]
absolutely amazing and I love this
community look forward to reading your
[862]
comments down below in the comment
section and tell then take care and I'll
[866]
see you in the next video bye guys peace
Most Recent Videos:
You can go back to the homepage right here: Homepage