W4 IRS Simulator question

[Romer D]

I’ve trying to change my W4 using the IRS simulator but I’m not sure if I understand the results. I’ve been withheld as single for a long time which has given me a high refund every year declaring as married with two dependents. I want change that and pay the minimum in my declaration next year and take the money now from my deductions. But the IRS simulator is giving me an amount I don’t get: it’s telling me to put just a total in section 3 very high and don’t specify where is that coming from. I’d assume it’s giving me the credit for my two dependents at least but not sure if the rest is coming from my bonus? I’m the only salary in my house, no salary from wife and I receive a bonus every year. 

[RachelW33]

The amount in Section 3 represents $2,000 per child under 17 (Child Tax Credit) and $500 for any other Dependents you are claiming (Other Dependent Credit).  If you do the math and it matches up, that would be the correct amount for Section 3 of your W4.

[Romer D]

Thanks! Yes, that’s what I thought as well. But is telling me to put a quantity way bigger than 4000 for my two kids. The only thing I can think of is because I have paid already some this year and that extra is to cover that?

[RachelW33]

It sounds like you entered information for other credits in the IRS W4 simulator or indicated that you itemize your deductions.  

It's a bit confusing, but Line 3 of the W4 is kind of a catch all for all the deductions and credits.  It includes amounts for other credits in addition to the Child Tax and Dependent Credits.  In addition, the simulator makes an adjustment on this line if you entered information regarding itemizing your deductions vs taking the standard deduction.