W4 and Child Tax Credit

[tspringstead94]

Hello, 

My wife and I had a child last year. I was delayed in updating my W4 in 2023 after he was born in May but have since updated my W4 to reflect my son as a dependent.

Does claiming a dependent on my W4 impact my ability to claim the child tax credit? I'm not certain if I get a tax break upfront from claiming him on my W4 that nullifies the credit. 

Also, is the child tax credit currently being expanded upon and if so, what would the impact be to my 2023 W2 filing?

Thank you in advance.

[DawnC]

No, nothing you put on that W-4 affects your ability to claim a credit.  The w-4 only affects your withholding on your paycheck.    Your employer is the only one who uses it - when you put 1 in the dependents box, you are telling your employer they can withhold less money from your paycheck since you will get a tax credit on your tax return.   If you did not update your w-4, you would just get a larger refund, but your paychecks would be smaller.    

If the IRS makes any changes after you file, they will issue guidance on what you need to do.   It is unlikely they will make any changes that affect this year, though.   They have done it before, so it is possible, and if they do, those changes will come with instructions.   You won't have to jump through any hoops, is my point;)