Effective January 1, 2012, the District of Columbia income tax withholding table and formula to be used in calculating employee withholding will be changed to eliminate the use of the standard deduction in the formula. This change will result in an increase in an employee’s withholding.
The FR-230, District of Columbia Income Tax Withholding Instructions and Tables booklet, has been changed to reflect the change in the formula. These booklets will be mailed at the end of December 2011. Copies are available online at www.taxpayerservicecenter.com. For those employers who use the tables in the booklet, you must begin using the new tables beginning January 1, 2012 to be compliant with this change.
For those who use the formula to calculate withholding amounts and do not use the FR-230 tables, there is only one subtraction needed to calculate the income on which withholding is required. The new formula requires subtracting the result of $1,675 times the number of exemptions from the annual amount of wages. There is no longer a subtraction amount for a standard deduction.
Tax Year 2011 Information Reporting Changes in W-2 and Form 1099 Electronic Filing Requirements
As of the filing season for tax year 2011, anyone filing 25 or more W-2 or 1099 series forms is required to submit them electronically on or before January 31, 2012. This change will assist the Office of Tax and Revenue (OTR) in its efforts:
- to eliminate fraudulent W-2 and form 1099 series statements and prevent the payment of unwarranted refunds; and
- to better protect District of Columbia residents from identity theft associated with fraudulent income tax returns.
Timely electronic filing of employer W-2’s will significantly reduce employee and OTR requests of employers for verification of DC withholding during this year’s filing season. For additional information, please contact OTR’s Customer Service Center at (202) 727-4TAX.
