The IRS has proposed new regulations for income tax withholding to reflect the statutory changes in the Tax Cuts and Jobs Act, including the elimination of the personal exemption.
The proposed rules and the new Form W-4, Employee’s Withholding Allowance Certificate, no longer use an employee’s marital status and withholding allowances. According to the IRS, income tax withholding using the redesigned form will generally use the employee’s expected filing status and standard deduction of the year.
The proposed rules do not require existing employees to complete a new W-4 solely because of the revisions, but workers are still required to provide a new form for certain changes in their circumstances.