In March, I had a baby. Do I need to change the number of dependents I claim throughout the year (with whom I change through my HR person at work)?
I am under the impression that the more you claim during the year, the less money the government takes out of each check, resulting in a bigger refund at the end of the year; and the less you claim during the year, the more money the government takes out of each check, resulting in a smaller refund come tax time. Is that correct?
Congrats on your newborn. You can increase the number of dependents you claim. You are able to submit a new W-4 to your HR department or the payroll processor your employer is using. HR can assist you in the process of filing it. f you need a W-4, you can get one to complete from IRS.gov or your HR department. You can use a fillable PDF form and do it all electronically.
The more dependents you claim, the lower your refund or, in some cases, increase amount due on your tax returns at the end of the year. That is because the amount withheld each pay period will be lower and your net pay will increase.