2020 W-4 Dependents

[bc_walters]

Do my spouse and I both put all of our eligible children on the new W-4, Or does only one of us get to claim them? On mine I have the 2 and the credit of 4,000. Does my spouse do the same or does she put 0? I make more than her if that helps.

[RobertG]

The old rule of thumb used to be that the higher-earning spouse claimed all of the dependents and the lower-earning spouse claimed zero dependents.

However, under the new tax law with the deduction for dependents replaced by a credit, this method is less accurate.

If you haven't filed your 2019 return yet, use the power of TurboTax to generate a new W-4 form. 

If you have already filed your 2019 return? Use the TurboTax online W-4 Withholding Calculator at TurboTax.com instead.

Here's how to generate and print a new W-4 using TurboTax. We recommend having your most recent pay stub handy:

1. Open or continue your return.
2. Inside TurboTax, search for W4 and select the Jump to link.
3. Answer Yes to Do you want to change your W-4 withholdings for 2020?
4. The following screens will ask you for your filing status, number of dependents, expected income, deductions, and other factors. Answer the questions as best you can for the most accurate result.
5. You'll eventually come to Print Form W-4 Results. Select the button(s) to print your W-4 form(s).
6. Print (or make) a second copy for your records and give the original to your payroll department. Do not file the W-4 with your tax return.

How do I update my 2019 withholdings and print a new W-4?

[bc_walters]

Of course the turbotax witholding estimator is down for updates. I'm assuming for the very issues I'm referring too and the new W-4 form. For now I'll just claim 2 and have her put zero. I'll check out the calculator once it's up again and change accordingly. I tried the IRSs calculator. The pre- filled form did not fill out the dependent section, only extra witholding section If you want a bigger return. Thanks for the info, hopefully the turbotax calculator is a bit more informative.

[CatinaT1]

As part of the Tax Cuts and Jobs Act, the IRS and Treasury adjusted the tax withholding tables, which affects the amount of income taxes withheld from your pay.  For 2020, W4's have been completely redesigned.  Exemptions or Allowances are no longer applicable. 

My suggestion is to use the IRS Tax Withholding Estimator here. 

[bc_walters]

Hi thanks. I understand that allowances are no longer applicable.  The form still aska ou for your number of eligible dependents. As we are both filling out a form labeled as married filing jointly, do we both put 2 dependents there? Or only one of us? The IRS witholding calculator gives no information on this section. It only tells you how much additional to withold based on whether or not you want a bigger return. We had an issue with my wife's employer not taking enough out for federal last year. I am worried if we both put down 2 dependents, this may happen again. 

Or does the number of dependents even matter since we both marked "married filing jointly" and "spouse also works"?

[ColeenD3]

In your case, there is no reason for you to both include the two dependents, especially since there was insufficient withholding last year.

The new W-4 is geared to giving you more in your paychecks as opposed to in your refund. You are not entirely bound by these instructions to the degree that you can manipulate it to withhold more tax and get the refund you want.

[bankstax49]

Of course the Turbo Tax W-4 calculator takes you to the IRS Withholding Calculator and generator, the original source of your question. It is a question loop!

I had the same question. I think I will put 2 dependents on highest income and zero for the lowest and then put a figure on 4c to increase our withholdings so that we aren't stuck paying out in 2021 April.