I am a single mom with 2 children will claim head of household on tax return & I have 1 full time job. How many dependents should I claim on my w4? The worksheet says 8.

[danese12382]

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[Carl]

If you claim 8, then I can guarantee you that you will owe the IRS money at tax time, because enough with not be withheld from each paycheck to meet your tax liability. Additionally, you'll also be penalized additional money for under withholding. So you should claim no more than you are entitled to. That would be one exemption for yourself, and one for each dependent you qualify to claim on your tax return.

[SweetieJean]

Keep in mind that Personal Exemptions go away starting in Jan 1, 2018.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/irs-statement-withholding-for-2018">https://www.irs.gov/newsroom/irs-st...>

[kelbells34]

The answer is what I have been taught but why does the W-4 form instruction tells you to enter 1 for yourself, 1 if head of household and 4 for each eligible child.  I have 2 children.  That would be 10?  Everyone would end up owing at the end.

[SweetieJean]

Try this:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/individuals/irs-withholding-calculator">https://www.irs.gov/individuals/irs-with...>

[Carl]

The way you fill out a W-4 changed drastically for the 2018 tax season. There are no more personal exemptions. So that's why it's important to read the instructions that come with the W-4. If one doesn't read the instructions, chances are high they will over-claim on the W-4 and not have enough taxes withheld. Then they'll end up owing an under withholding penalty at tax filing time.
On the other side of that coin, if you under claim on the W-4 then you're basically allowing the Govt to use your money for the entire year, interest free. For some, the reduction in take-home pay matters more than gietting a big 4-figure tax refund.

[kelbells34]

Thank you for your responses. The Calculator didnt work for me. The Form W-4 instructions and Personal Allowance Worksheet is for 2019, sent to me by my HR.

[Carl]

Basically, read the instructions you were provided for the W-4. What we were taught in the past concerning the W-4 no longer applies at all. The reason I stress reading those instructions for each block/line of the W-4 is because if you don't, chances are good you will fill it out wrong and will not have enough withheld from each of your paychecks. I don't think anyone needs that surprise at tax filing time - especially a single mother.

[kelbells34]

Exactly, if i follow the instructions, i get 10. So, not sure if i should follow. Or did the instructions always say that and everyone just knows not to follow?

[Carl]

Let's see...... Just so you know, the absolute most current instructions for the 2019 form W-4 can be obtained at <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/fw4.pdf">https://www.irs.gov/pub/irs-pdf/fw4.pdf</a>
A single mom with 2 kids, filing HOH. Using the 2018 numbers that means your first $18,350 of earned income is tax free.
Now 10 would probably be right for you if (and only if) both of your children will be under the age of 17 on Dec 31, 2019. So if one of the kids will turn 17 before the end of the year, you don't get that credit for the child that will "NOT" be "UNDER" the age of 17 on Dec 31 of 2019.
Now if I assume both of your kids will be under the age of 17 on Dec 31 2019, I come up with 11 on the W-4 based on what I know about your situation, assuming you expect to earn less than $71K in 2019. So if you're getting 10 I assume you did not enter a "1" in box D of the worksheet.
Pay attention to detail for box D. Is says "enter 1 if you are single". It does not say to enter 1 if you are "filing" as single.

[kelbells34]

I get that. Someone said if you claim 8 they guarantee you will owe at the end. Can you imagine if I claim 10 or 11? Doesnt seem like we should follow their worksheet. Right?

[Carl]

If my assumptions stated above are correct, I'd stick with 10. Now if you expect to have more than $71K of income in 2019, then 8 or 9 would be right for you. THe lower the number you claim, the less that is withheld from each of your paychecks. That increases the possibility of you owing the IRS more at tax filing time. So that's why I think 10 is right for you, provided my assumptions are right.