IRS Releases 2024 Publication 15-T and Forms W-4, W-4P, and W-4R

The IRS released the 2024 Publication 15-T, Federal Income Tax Withholding Methods, as well as the 2024 Forms W-4, W-4P, and W-4R. Employees and payees may now use the IRS's tax withholding estimator when completing their 2024 Form W-4 and Form W-4P.

Publication 15-T
Publication 15-T describes how to figure federal income tax withholding using the percentage method and the wage bracket method and describes alternative methods for figuring withholding. The publication explains how to withhold income tax based on pre-2020 Forms W-4 and 2020 or later Forms W-4. Publication 15-T also provides the amounts that employers should add to the wages paid to nonresident alien employees working in the United States when figuring their income tax withholding.

Form W-4
The IRS released the 2024 Form W-4, Employee's Withholding Certificate, with a few minor changes. Instructions for using the IRS's tax withholding estimator when figuring withholding for multiple jobs have been added back to the form, which were removed in the 2023 version. The amounts in the tax tables for use with the Multiple Jobs Worksheet have been updated for 2024.

Withholding on periodic payments of pensions and annuities
The 2024 Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments, and the 2024 Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions, have also been released. The Form W-4P is used only to request withholding on periodic pension or annuity payments. Previously, Form W-4P was also used to make withholding elections for nonperiodic payments and eligible rollover distributions. Additional withholding on nonperiodic payments and eligible rollover distributions are now made on Form W-4R.

To figure withholding on periodic payments of pensions and annuities based on a 2022 or later Form W-4P or a 2021 and earlier Form W-4P, use Worksheet 1B in Publication 15-T. Withholding on periodic payments based on a 2021 or earlier Form W-4P may also be calculated using Worksheet 3 (Wage Bracket Method) or Worksheet 5 (Percentage Method).