I am married and have 3 small children, when I started my job last year and filled out W4 it came up with me having 7 deduction allowances? I am now wondering if this is correct as no federal tax is deducted from my check and just a $1.52 for my SC states tax biweekly. I earn $21/hr and approximately 32 hours a week.
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@lwagner23, since you have three small children under 17 years of age, you are entitled to the Child Tax Credit for each. This amounts to about $6000. The tax credit decreases the amount of your tax liability. This may be why you do not have any federal tax deducted.
This TurboTax Calculator is helpful to verify whether the amounts being deducted or not deducted are reasonable:
https://turbotax.intuit.com/tax-tools/calculators/w4/
Do you receive any other income besides from your job?
My husbands income, but otherwise for myself, no other income.
If your status is Married Filing Jointly, you should also complete Step 2-B ( worksheet on page 3) and find the liability at the intersection of the two incomes on the table on page 4.
https://www.irs.gov/pub/irs-pdf/fw4.pdf
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