Good morning, Bielsa37!
You mentioned you just filled out a new W4 to include your new dependent and yes, this means they will withhold less out of each paycheck, and will result in the higher take home pay you are getting.
The reason for this is they are accounting for the 2024 tax year ,(tax returns filed in 2025), child tax credit. Currently it will be $2,000, per child with $1,700 of that being potentially refundable through the additional child tax credit.
How much of an impact this will have on your overall tax return results, depends on many factors, total earned and taxable income, all combined withholdings, payments, deductions and credits.
My suggestion is to check out where you are in terms of taxes, periodically throughout the year, to avoid any sort of major surprises at tax time. , This is especially important when experiencing any major life changes, or changes to anything financially related.
Below are some links to help to see where you are currently in terms of your withholdings and overall tax outcome:
Thank you for joining us today and have a great rest of your day!
Terri Lynn, EA
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Terri Lynn
