W-4 Claim Dependent

[dsun102]

Hello,

I'm completing a W-4 for a new job that I'll be starting. I'm married, filing jointly, and have 1 child under 17.

Step 3 of the W-4 form states "If your total income will be $200,000 or less ($400,000 or less if married filing jointly): Multiply the number of qualifying children under 17 by $2000..." I believe we will be making more than $400,000 in 2023. Does that mean we can't claim any dependents? 

Thank you

[jacquieb]

Hi @dsun102 

You are correct. Your credit will be phased out if your income is above $400,000. I would not recommend entering anything in step 3 or you will under withhold. 

If your income is over the threshold, you may be able to claim a partial credit, depending on how much your income exceeds $400,000. 

Hope this helps! 🙂

[dsun102]

Thank you!

Do you advise additional withholdings each paycheck to avoid owing the IRS money?