New employer

[Lbarnett0818]

I recently switched jobs and had to complete a new w2.  In step 3 I have to multiply the number of qualifying dependents by $2000 which is new to me.  I don’t feel my employer is taking out a sufficient amount in federal taxes.  How do I ensure that is being done?

[ZeeEA20]

Hello @Lbarnett0818 

Filling out the W-4 only tells your employer how much money to withhold from your paycheck on the federal end. You fill it out as accurately as possible and that should make sure the amount withheld is close enough to what is needed for the federal return.

Step 3 of W-4 form Claim Dependent and other credits has two parts: depending on the age of children you will either claim $2,000 per dependent or $500 per dependent. 

If you feel your employer is not withholding enough, you can always add extra withholding in Step 4 under line 4c. 

Please use this W-4 Calculator for your convenience:

W-4 Calculator 

W-4 Form IRS 

Thank you for using TurboTax!

[Lbarnett0818]

I have never had to withhold any extra before.  The $2,000 aspect is what is confusing to me.  What is the federal income tax for someone that makes $52,000 per year?

[JBedford]

There is not a simple answer to that question, as it depends upon many factors, including what deductions you might be eligible for. You might find our free Taxcaster tool helpful, however! 

[ZeeEA20]

The impact of claiming dependents on tax withholding and take-home pay is significant. The more dependents you have, the less income your employer withholds for taxes, leaving you with more money in your pocket. 

If you have qualifying children under the age of 17 - you are eligible for $2,000 child tax credit on your tax return when you file, which will lower your taxable income.
Claiming dependents lowers your tax liability and the amount you pay in taxes. By estimating your number of dependents, you will have the proper amount deducted from your checks each pay period. 
If you would like to have more tax withheld from your checks, you don't have to claim all your dependents on W-4 form and you can claim the overpayment on your tax return when you file. 

Hope this is helpful