My wife and I both work and just had our second baby. We pay for childcare for both children. Looking at the new form, I wasn't sure how to complete to minimize the chance of having to pay in.
Hi Jld473, Congratulations on the little one! It can be tricky to find that sweet spot of just the right amount of tax withheld to not owe tax and not receive too large a refund. You can use the W-4 Calculator which will take you step-by-step through the worksheet, adding the new dependent, which will result in less tax withheld.
Once you complete the form, give it to your employer. Then, keep a close eye on your next few paychecks to see how the changes impacted your federal income tax withholding. Since you do not want to owe tax when filing your 2022 tax return , it's a good idea to keep an eye on your paychecks and compare your 2021 total tax from your 2021 tax return with your year-to-date federal tax withholdings from the most recent paycheck for each of you.
Also review the childcare credits for 2022 since you now have two children.
I hope you find this helpful!
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