As a wage earner, the taxpayer pays Federal income tax by having it withheld from his or her pay during the year. The withholding is based on the information he or she supplies when filing Form W-4 - Employee's Withholding Certificate with an employer. Which of the following is false regarding the completion of Form W-4?

A. Taxpayers who have submitted Form W-4 in any year before 2020 are required to submit a new form because of the form redesign.

B. The simplest way for a taxpayer to increase his or her withholding is to enter on line 4c the additional amount he or she would like his or her employer to withhold from each paycheck after his or her Form W-4 takes effect.

C. If the taxpayer is eligible for income tax credits such as the Child Tax Credit or Credit for Other Dependents, he or she can follow the instructions described in line 3 to decrease his or her withholdings by the appropriate amount.

D. Allowances are no longer used for the redesigned Form W-4 to increase transparency, simplicity, and accuracy.

Answer rating: 100% (QA)

Option A is correct as it is false employees ... View the full answer