How to Fill out the IRS Form W-4 2018 Married Filing Jointly + Kids Online Version


today we’re gonna talk about the W-4
the 2018 version and we’re gonna focus on married filing jointly with kids and
we’re also gonna answer the question why are my allowance is so high my name is
Travis sickles certified financial planner with sickle hunter financial
advisors the w-4 helps us calculate the amount of allowances which in turn
calculates the amount of taxes that should be withheld from each paycheck
the higher your allowance the less money that’s actually going to be
withheld from each paycheck so if you’re married filing jointly and you have kids
your allowances are apt to be a lot higher than somebody who is single with
no kids one of the biggest questions that we see when filling out the w-4 for
2018 is the fact that the allowances are higher and the reason those allowances
are so high is because the Tax Cuts and Jobs Act has taken the child tax credit
and doubled it so it went from one thousand dollars all the way up to two
thousand dollars if you make less than one hundred one thousand four hundred
and one dollars as married filing jointly then each child that you have is
going to be four allowances so if you have three children that’s going to be
twelve allowances so you can see that the number increases the more allowances
that you have which will reduce the amount of withholdings that you’re going
to have in each paycheck and ultimately less taxes at the end of the year now
just because you have a high amount of allowances and you’re taking less out of
each paycheck it doesn’t actually affect your overall tax liability that’s going
to be based on all the factors that are included in your financial situation the
w-4 is pretty straightforward but if you do have a question such as
you don’t know how much your bonus is going to be and your allowances might
change based on those answers well if it’s off by one or two based on those
answers because you don’t know them just understand that those are only going to
affect your withholdings the amount that’s withheld from each
paycheck it’s not going to affect your overall tax liability because the w-4
helps you figure out your allowances to help you figure out your tax liability
on each paycheck and that’s only an estimate when filling out the w-4 for
2018 you have a choice to take the online version or the paper version the
online version is going to be a little bit more accurate the reason that’s
gonna be a little bit more accurate is because it’s take into consideration the
amount you’ve already withheld so if you’ve over or underestimated previously
for whatever reason then it’s gonna adjust the amount of allowances that you
have so if you take both you might not get the same answer that’s okay because
at the end of the year when you file your taxes it’s gonna make those
adjustments the idea is to get as accurate as possible and withhold the
correct amount so you don’t get any huge surprises at the end of the year if you
look at the top of the w-4 for the 2018 version the paper version you’ll see
that it explains clearly this is only an estimate and you might have a refund at
the end of the year or you might owe taxes at the end of the year and that’s
gonna be based on your overall tax liability the w-4 is only an estimate
the online version will say exactly the same thing at the end it might tell you
that you’re gonna get a refund here’s what you can expect as a refund but it
doesn’t guarantee it because it’s only an estimate we’re gonna go to the online
version now so I can walk you through what you can expect when you’re filling
out the w-4 2018 for married filing jointly with kids this is the page that
you’ll see when filling out the w-4 on the online version I’m gonna put the
link at the bottom it’s irs.gov/w4app that’s APP so we’re gonna go ahead
and fill it out we’re gonna fill it out as married filing jointly check that off
can anyone else claiming as a dependent on his or her tax return
no let’s click continue next page first I’m going to do it as one income earner
we’re going to keep a 1 right up here down here we’re gonna select the number
of dependents you will claim on your tax return so I’m gonna put three because I
have three kids so I’m gonna put a three right there don’t include yourself or
your spouse scroll right down to here the child tax credit and we’re gonna put
again we’re gonna put a three then I’m gonna click continue so here for this
estimate I’m just gonna put $100,000 as this example I’ll go through a couple of
other examples in a moment I’m gonna put 0 for this right here 0 this is the
number that you’re going to get off of your last pay-stub and that’s going to
tell you what you’ve already paid year to date and what you’re paying on each
pay stub into the withholdings and by putting 0 my allowances will actually be
less as a result because it needs to withhold more taxes because we’re
already in March at this point twice a month I’m gonna put twice a month here
that’s 24 a year 24 payments a year every two weeks would be 26 and weekly
would be 52 times a year monthly 12 I’m gonna keep it at twice a
month and I started this job on January 1st or if you were already employed just
put January 1st and if you expect to be employed for the whole year put December
31st then I’m gonna come down here and click continue these are only if you’re
itemizing deductions and I’m gonna skip over this and go continue and there you
have it right here it says 13 allowances it says I’m gonna make a hundred
thousand dollars this year I’m gonna be the only income earner my estimate is
going to be two thousand seven hundred and forty two dollars and this is all
that you need 13 allowances now let’s go back for a moment adjust the amount of
taxes that we’ve paid year-to-date and for whatever reason we withheld
considerably more let’s say with twenty five hundred dollars and I click
continue continue then here you’re gonna you’re going to see that the allowances
are going to go up significantly the reason that it went up to 20 allowances
is because it needs to reduce the amount of tax liability
that’s coming out on each paycheck because my estimate for the year is
still going to be exactly the same but since I’ve already paid all these
additional dollars then it needs to withhold significantly less again the
higher the allowances the less taxes that are coming out on each paycheck
another reason why your allowances might be significantly higher is if you had a
financial change or a life change so if you had an additional child that’s going
to increase it significantly and if you had a job change where your your pay is
significantly different that’s also gonna affect it quite a bit now let’s
say that we’re married filing jointly no one can claim this as a dependent
continue now let’s say you have a working spouse so now you have two jobs
in the household and let’s say you again have three children qualifying children
is three click continue and let’s say job earner number one fifty thousand job
order number two fifty thousand no bonuses nothing else is different it’s
gonna force you to put a number here so we’re just gonna put zero for now it
won’t let you continue unless you put something in there and we’ll do twice a
month again click continue continue and here you’ll see that it breaks up the
allowances that you’ll each have so the each have five so you each have five
allowances but what you’ll notice too is your overall tax liability is exactly
the same because when you are married filing jointly you’re filing jointly
therefore you’re 50 plus 50 is going to be a hundred so it’s going to be the
same amount that you’re actually going to have as a tax liability it’s just the
allowances are going to be split up so I’ll go through it again if you do
married filing jointly click continue and we’ll stick with the two jobs that
we just had but this time we’ll only put two kids and we’ll do two kids click
continue we’ll do the 50 thousand again fifty-thousand again we’ll just zero
zero zero zero same here same here continue continue and what you’ll see
here is it gave zero allowances and five allowances so you can see right here the
effect of that that child tax credit by one you can see it went from two
thousand to four thousand seven hundred and forty two dollars and you can see
that there are zero allowances here and five allowances here you can see that
going through the different scenarios on the w-4 for the 2018 version that the
Tax Cuts and Jobs Act really impacted the amount of allowances that you’re
going to have and will also impact the amount that you’re going to see back in
each paycheck so if you’re making the same amount you should start to see more
in each paycheck if everything is the same and for each child that you have
those allowances are going to be higher and that’s where you’re getting that
large number from if you’ve enjoyed this video be sure to subscribe and leave
your comments down at the bottom

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Comments

  1. I liked the video, however i still need a dummy proof video. I got confused when you put $0 on tax withheld. We are in march already, so should i still put zero? or whatever they took already

  2. Thanks for the explanation.
    I have a question in regards to tax filing. I start working in March 2018 and my employer gave me 2017 (W-4) form, would that be ok or I have to file out 2018 (W-4) form.

  3. It answers many questions I had with new W4 Form. I have questions:
    1. How the number of allowances indicated in the online version for Job1 and Job2 translate to Paper Version?
    2. How "Two-Earners/Multiple Jobs Worksheet" in the paper version will affect the number of allowances?

  4. Is there a video for the paper version for filing married with kids? It's hard to keep up with the online version, i have the paper verison

  5. Hi can you explain a little bit more how to fill the w4 as single with child on paper form please, thank you

  6. How soon should I expect to see the changes on my paycheck after updating my w-4, maybe due to an additional child, for instance…???

  7. How about filling jointly with spouse, but he's an entrepreneur and his income isn't a consistent 2 weeks or month to month? How would I file this for my new job on paper? Thank you

  8. Thanks. Only thing I wish you had showed was if one of the spouses had a significantly higher income and how that would affect the two W-4 with-holdings, like 40k / yr and 100k / yr for the 2 incomes. Ive read that the higher earner should claim Zero while the lower earner should claim more allowances, but now with the 2018 changes it may be different. Will need to check out our scenario online

  9. I'm married and we are filling out jointly, I have 2 allowances and my husband has 2 as well, he makes around 43k a year and I make around 36k a year. I used the calculator but I really don't understand it. I just want to know if we would end up owing the government? We have the two allowances because 1 for yourself and 1 is you're married filling out jointly, please help!!!

  10. Hi, i am new to US and will be in US payroll only from May 1st. While putting in the calculator i put in my 8 months salary and the allowances 1 child. My payslip which got generated on 15th of this month had no deduction considered and hence high tax deduction. Should i add the Social security, Medicare and Withholding tax as the total tax already paid for this year in the tool. I got fairly large allowance number when i used the IRS app. Can you guide me.

  11. I'm starting a new job soon, but my husband is the head of household and we have 3 dependents. How should I fill out my w-4? My job has me doing a paper version of the w-4 but it's through their online portal.

  12. Hello, So I am head of household, engaged and my fiance does not work, and I have two children I am claiming in 2018 while I an working Multiple jobs. The additional jobs worksheet is way to confusing. Do you have a video to walk me through the correct way?

  13. my calculator did not tell me anything about allowance.

    Just started working . Filing jointly

    work August 15 2018

    total income for 2018 both me and wife only less than 14,000

    2 dependents
    (1child + 1 parent)

    Question

    what should I put on my claim allowance on my w4? and my wife's w4?

  14. Hello Travis,
    I have 2 questions can you help me with the answers.

    1- Can I file jointly even if my wife is temporarily living overseas?

    2- And do I have to have health insurance for her? even if shes not living in the US?

  15. what if my wife is pregnant and will be having a kid within the next calendar year, can I claim the child as an allowance?

  16. The calculator is not giving me any allowances. I get all the other info on your screen but no allowances. Do you know why?

  17. My questions is I’m married with two boys we make over 100,000 but my husband has two jobs and I am have one. He makes more money than me but I claim 1 dep in each. Is this wrong and is so do we both claim 2 at each job w4

  18. Question: how many allowances should I claim if I am married filing jointly and work two jobs but my husband does not work ? I originally put 1 on my W-4 but feel I should change it to 3 ? Thanks !

  19. I did this and it’s insane. It wants me to claim 0 on all the three jobs we have. Are they crazy!!!! Then I’ll be broke. I rather not owe than to get money back. But this can’t be right for me. I usually do my own taxes and want to go to someone but they charge too much. 😫😫😫😫

  20. Married filling jointly, 1 kid, $100,000 income, wife works part time. how should I fill out w4? I don't want a refund and I don't want to owe..

  21. My wife and I are both teachers and just had our second son (2 kids in the house total). Haven’t paid too much attention to our W4 since becoming teachers 6 years ago. With two children and identical income besides my middle coaching income, how many dependents should we claim on each of our W4’s? Do we both put two, or one of us put two, and the other put 0?

  22. Hi I want to know that,if I add my 2 kids and wife (3) on w2 at my work,or I put 0 now and show them dependence end of the year when I will do my taxes return, is it same ?

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