2020 W-4, No Exemptions

Technical topics regarding tax preparation.
#1
EADave  
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Texas
Hello all and Happy New Year! I truly hope 2020 is the best of your lives, personal and business!

I've reviewed the new W-4 and I am not a fan of the eliminated exemptions, so pardon me if this question seems basic. I'm thinking if a client has a child under the age of 17 as of 12/31/2020, and her income is under the $200K/$400K threshold, this will count as a $2,000 entry on the form, which in my old school mind, translates to roughly $16,000 deduction (2,000/.12) as she is in the 12% tax bracket.

Now, can I assume this $2,000 entry equates to 4 prior years' exemptions (16,000/4)? So, in other words, if I instruct my client to fill in the $2,000 in Step 3, will this be the same as taking 4 exemptions? I've reviewed the manual withholding tables from Pub 15-T, so I think I have a grasp of how the employer will withhold; I just wanted to check with the payroll experts here first. By the way, I think this new worksheet and instructions will have manual payroll clients switching to automated payroll of some type in the near future; this could be a great opportunity for those that are seeking out new payroll clientele.

Thank you!
 

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