W4 help

[kburns925]

I'm wondering how to adjust my W4 to be more accurate, since my family owed a lot this year. 

My husband and I both work, I make slightly more. We have 1 child born in 2024. We've been filing jointly for many years but are open to other options if its recommended . Thank you!

[evelynm]

As you both work be sure that you fill out W-4 forms for each of you.   To adjust your withholdings TurboTax has an amazing tax caster to generate an updated W-4:   W-4 tax calculator 

In the tax calculator tool you will include that you have a child and you can choose different filing options to compare the results of Married Filing Jointly vs Married Filing Separately.    

When completing the tax calculator for updated W-4 forms, ensure you account for all sources of income.    You may want to adjust your withholdings as you are the higher income earner for simplicity.

Married filing jointly vs separately affects more than just how you fill out your taxes and typically filing jointly provides the best tax advantages.   Couples who file separately typically get fewer tax benefits. Separate tax returns may result in more tax.  Here is a link for details:   MFJ vs MFS  

[kburns925]

Thanks Evelyn, 

To be clear, both of us need to fill out the W4, but only one of us should include the dependent? I want to be sure we update both appropriately. 

[evelynm]

Only one of you should claim your dependent.   Also, if you qualify for the child tax credit only one of you should take the credit in the tax calculator tool to not double up.

It's important to submit a new Form W-4 whenever you have major tax situation changes, such as a change in marital status or the birth of a child, to ensure your withholding is adjusted accordingly.

• Child Tax Credit: The Child Tax Credit (CTC) can reduce your taxes by up to $2,000 per qualifying child under 17.
• Updating W-4: You can adjust your W-4 form to account for the Child Tax Credit and reduce the amount of federal income tax withheld from your paychecks.