If you enter dependent information into the W-4 and multiply that number by $2000, it will result in LESS taxes being withheld from your paychecks (and possibly a larger amount due at the end of the year!)
By entering the dependent information in Step 3 of your W-4, you are telling your employer that you will be taking a tax credit at the end of the year for the dependent (and that you don't need as much tax taken out because you will have a credit for that amount to claim later.)
Keep in mind that the W-4 doesn't do a great job of capturing other income that you may owe taxes on such as pensions, investments, or rental properties. If you have these other income sources, you will want to enter information about that income in Step 4(a). If you have a second job or income from gig work, you would complete the Multiple Jobs Worksheet (found on page 3 of the form,) and then include the amount for extra taxes to be withheld from each paycheck on line 4(c)
Clarissa
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