The newest version of Form W4 is very confusing. I often hear people say they have $0 Federal tax taken from their pay checks, especially if they claim $2,000 or more for dependents. I know that it depends on wages earned, but if someone has 2 dependents and claims $4,000 but has $0 tax taken out of their pay, will they owe tax at the end of the year? Tax calculators don't really tell someone what they should claim so it seems like we are rolling the dice. Any suggestions on what to do or an explanation is welcome!
