W-4 ALLOWANCES with a newborn and a new house

[Dan Wang]

I am currently married and filing jointly with my spouse. We just bought a new house (1st home) AND welcomed our first child within the last week. My spouse and I have always put down 1 for W-4 Allowances and now with two major events in our lives, I am wondering if will I have the option to increase by W-4 Allowances? If so, what can I put down for that without of course owning tax money when the next tax season comes? 

[SoCalGal22]

The IRS replaced the old Form W4 with a new system beginning in 2020.

It’s easy to adjust your withholding.  You can do it on paper or electronically.  The old-fashioned way is to walk through the worksheets on the W-4 form.

An even easier way is to use the TurboTax W-4 Calculator.

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

A new child born in 2022  is claimed for the whole year, so be sure to Claim Dependents on Step 3.

A new home is important on your tax return, but is usually not reported on a W4.

I hope that answers your questions. Please feel free to give TurboTax a call anytime if you have additional questions or need assistance.

Have a great day!

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