Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Elisemom
New Member

Should I adjust my W4? Baby born in 2021

I had a baby in 2021 but have not changed my W4.  I want to keep as much money on my paycheck as possible but I do not want to withhold too little and end up

owing. What is the best approach? 

1 Reply
conniem123
Employee Tax Expert

Should I adjust my W4? Baby born in 2021

Hi Elisemom,  Congratulations on your little one!  .  It can be a major tax event, too.   As of today, for tax year 2022, the Child Tax Credit has reverted to $2,000 per child dependent 16 and younger, with $1500 being refundable.

 

You can submit a new Form W-4 with the dependent, which will decrease your tax withholdings and have more in your paycheck.  There is a W-4 Calculator that takes you step-by-step through the worksheet,

 

https://turbotax.intuit.com/tax-tools/calculators/w4/

 

Once you complete the form, give it to your employer. Then, keep a close eye on your next few paychecks to see how the changes impacted your federal income tax withholding.  It's always a good idea to compare your 2021 total tax on your tax return to the year-to-date federal tax withholdings on your most recent paycheck.  If you find not enough is being withheld, then submit another Form W-4 without the dependent to revert back to a higher withholdings.

 

I hope this is helpful!

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.46m
Members

2.57m
Discussions

Manage cookies
v