Area workers may be seeing more money in their take-home pay starting January 1st. The Iowa Department of Revenue has begun to update its income tax withholding tables for 2020 to comply with recent tax laws changes. Revenue spokesman John Fuller says employers will rely on those tables to cutback on withholdings on employee paychecks
The question becomes how much more money will local workers see in their paychecks.
Iowans who mark “zero” on their withholding may consider raising that to a “one” or “two,” or they may not need to make any alterations at all to their W-4 form.
While it may seem like a nice reward to get a fat tax refund check every spring, Fuller says many Iowans like to adjust their earnings to come out closer to the break-even point.
The Iowa legislature enacted sweeping tax reforms in 2018 and the changes are being put in place gradually for the 2019 and 2020 tax years. You can find the new tax tables and the Withholding Calculator at the Iowa Department of Revenue website: tax-dot-iowa-dot-gov.