Take Home Pay to Increase in 2020
Next year you will have a little more take home pay thanks to new state tax laws. The Iowa Department of Revenue is updating its income tax withholding tables for 2020 to comply with recent tax laws changes. Revenue spokesman John Fuller says employers will be trimming the amount of Iowa tax withheld from paychecks starting January 1st.
Fuller says how much more money you will get out of your paychecks next year is hard to answer as everyone’s tax situation is different. If you mark “zero” on your withholding, he says you should consider raising that to a “one” or “two,” or you may not need to make any alterations at all to your W-4 form.
The Iowa Department of Revenue spokesman also suggests adjusting your earnings to come out closer to the break-even point instead of getting a big tax refund every spring.
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.
