W4 question

[Fishingfam22]

My husband is working and we have 3 kids he claimed 3 dependents on his w4 we noticed he’s not getting any federal taxes taken out. ( this is a new job)  did he make a mistake? We double checked and he’s not claiming exempt so I’m not sure what’s going on. 

I also just started working a part time job. I made the mistake of also claiming 3 ( I didn’t realize the higher paying job claims the most deductions) well same thing I got no federal tax taken out of my check.  

help! I’m really confused on the w4 break down. Should I be claiming zero since my job is making less? Should he change his deductions to get federal  taken out? Will we owe at the end of the year? Has something changed with the federal tax with holdings we’ve always had federal taken out. FYI we make less then 50 thousand a year and qualify for child tax credits. 

I just want to make sure we don’t end up owing at the end of the year. Thanks  please help

[NCperson]

@Fishingfam22 - it's really hard to say without knowing your projected earnings for the year. it is possible - there are no federal withholdings because those 3 children (assuming they are under 17 years old) will create a $6,000 tax credit under most circumstances....

how much do you and your spouse expect to earn for all of 2022 ? (don;t forget to add in what your spouse earned as the prior job in 2022). 

[Hal_Al]

@Fishingfam22  said "we make less then 50 thousand a year and qualify for child tax credits".

That means you will owe no tax* and will actually get a refund through the refundable portion of the child tax credit.  Your employers are withholding the correct amount (zero).

*$50,000 - $26,000 standard deduction = $24,000 taxable income.  The tax on that is about $2500.  The $6000 child tax credit (3 x $2000) will result in you getting a ~$3500 refund. 

[Fishingfam22]

Ok I think I get it. Since my husband it claiming 3 on his W4 should I claim zero? I’m only working part time. I’m just not sure what I should be putting on my w4 

[Fishingfam22]

Thank you for the response. All three children are under 17. Projected income is around 30,800 for the year. I’m just not sure what I should claim on my w4. Since my husband is claiming 3 should I claim zero? 

[NCperson]

@Fishingfam22 - you are not going to owe any federal tax comes April 15; in fact you will get a refund.  

$30,800 of income less the standard deduction is $25,900 leaving taxable income of $4,900.  The tax on that is $490.  Then there is the child tax credit and the earned income tax credit which will 'wipe out' that $490 and create a refund.  

if there is no withholdings, it won't matter, there will still be a refund comes April. 

[Fishingfam22]

Ok thanks I’m was really confused when I didn’t see federal with holding on my husbands pay check. 

Should I claim zero on my w4 since my husband had claimed the 3 kids on his w4?

[NCperson]

@Fishingfam22 - if really up to you.....the higher number you claim, the less will be withheld.  As noted above you are not going to owe anything on April 15, so if you put in zero and taxes are withheld, that will increase your refund comes April 15.