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heatherleejoyce
Returning Member

Child tax credit

Why does the W4 tell you to claim "4" for ONE child in the child tax credit section (if your income is in a certain tax bracket)

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4 Replies

Child tax credit

OK  ... don't get hung up on that worksheet ... the basic idea of that form is to estimate the correct withholding for your family and income situation... so just follow the form or  use a tool ...

 

http://www.irs.gov/Individuals/IRS-Withholding-Calculator  

 https://turbotax.intuit.com/tax-tools  

http://turbotax.intuit.com/tax-tools/calculators/taxcaster  

 

 

heatherleejoyce
Returning Member

Child tax credit

I tried out the link for the tax withholding estimator. Your answer is kind of what Ive heard before. So the "4" for ONE dependent is considered 4 withholding not counted as 4 dependents.

heatherleejoyce
Returning Member

Child tax credit

Also I appreciate the links you provided but the questions asked under the section for W4 is kind of for after you already started the job. The link was asking for what taxes are withheld from my check and I'm about to start this new job so Im trying to fill out my W4 correctly, I now have a child and obviously dont have that info yet. 

Child tax credit

As said before, just use the first IRS W-4 withholding link.   Do not try to micro manege  a W-4.   Just list the number of dependents and filing status.   It is better to be over withheld then under withheld or you will owe tax at the end of the year.    Don't even consider things like child tax credit - you may or may not even qualify for it - if you do then you will just get a larger refund and you can adjust next years W-4 accordingly.    Since W-4 withholding is based on a year and this year is more than half over it is difficult to predict a W-4 to allow for past earnings and future earnings and to account for low withholding at the start of a new job.    When there will only be a few  months pay, the type and amounts of any credits you might get are very difficult to predict and can be very different when there is a full years pay - many credits depend on the amount of income and disappear with either low or high income - (child tax credit and EIC for example.)

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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