NJ W4 Tax Witholding Inquiry

I was asked to complete a NJ-W4 for my state (NJ) when I started a new employment. I believed that the W4 allowances were rendered obsolete by the tax reforms in 2019 (?). I entered a 2 in the allowances numerical part (me+spouse+dependents) because I am married with kids. Is this accurate, or did I assign withholdings too much or too little? After 2022, I was unable to discover any information about this online.

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I was under the impression that withholdings on W-4s were made obsolete during the 2019 (?) tax changes.

Withholdings are still very much a thing. What changed was how the federal W-4 works. The old version included “allowances” that people claimed to reduce their withholdings. This is now obsolete. The new version simply asks people to specify a dollar amount for extra withholding beyond what is determined by their filing status and dependents.

This change only applies to the federal form. States can implement their own W-4 equivalents and may still use allowances.

As long as you followed the instructions when filling out the NJ-W4, you should be fine.