W4 Dependent Working Parents Toddlers Education Tax Credits

[awpritzlaff]

Both my spouse and I work full time jobs. I am filling out W4. We have one child with nanny and the other (4) in preschool. What amount should I put for education tax credit?

[Bsch4477]

Do you mean child care credit?

• While the W-4 is primarily used to adjust withholding for the Child Tax Credit, you can potentially reduce your withholding in anticipation of other credits, such as the Child and Dependent Care Credit, by factoring them into your withholding calculations.
• You would do this in Step 3 of the W-4 by entering the total amount of anticipated credits.

[awpritzlaff]

and how do determine the amount of those credits?

[Bsch4477]

https://www.irs.gov/credits-deductions/individuals/child-and-dependent-care-credit-information

[awpritzlaff]

great thank you. I understand w4 is for withholdings for employer. The information link you provided said "The maximum amount of qualified expenses that can be used in computing the credit is $6,000." So am putting $6,000 in option? Below is my layout for w4 online for filling. 

Number of dependents under the age of 17

Number of other dependents

Other tax credits (such as education tax credits and the foreign tax credit)

$

[Bsch4477]

Correct.