I put myself as HOH and I have 2 children as my dependents and I make 27.46/h. I recently made these changes and have noticed barely any FED tax withheld. Is it right?

[Critter-3 · Accepted solution]

Probably ... between the standard deduction for HOH + 2 kids under the age of 17 then you will not owe much at all if any so the withholding reflects that.   On the W-4 you filled out  if you clicked on HOH and then entered 2 kids as qualifying children then the employer withholds based on this information ... the new W-4 system is aimed at keeping your refund as close to zero as possible.   If you want to pump the refund then switch to SINGLE  and remove one or both of the kids then you will have more withheld naturally and less in your paycheck.

Use the Tax Withholding Estimator on the IRS web site to figure out what you (and your spouse if married)   should each put on the W-4 forms that you give to your employers. It's much easier than using the worksheets on the form. It will let you adjust your withholding to get the approximate refund amount that you want.

Tax Withholding Estimator

[NCperson]

If you work 2000 hours.......

1) $27.46*2000 hours = $54,920

2) subtract $19,400 for the standard deduction = $35,520 taxable income

3) tax liability = $2,842

4) less child tax credit = 4,000 = refund of $1,158

you really don't need to have ANYTHING withheld from your paycheck for federal tax (unless you just want a larger refund at the end of the year).   the refund next April should be in the $1000 range (again assuming you work 2,000 hours)

[Critter-3]

There would be little to no EIC at HOH & 2 kids  and $54K of income so the refund would be in the $1100 range. 

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned...