Filling out new W-4 for 2025 with dependents - best strategy?

The 2025 W-4 form works differently than the old version that used exemptions. Instead of exemptions, you now input actual dollar amounts for credits and deductions. For your situation with 4 dependents under 17, you're right that each child qualifies for a $2,000 tax credit. However, putting the full $8,000 on your W-4 might reduce your withholding so much that you end up with little to no refund (or potentially owing money). The W-4 is designed to make withholding match your actual tax liability as closely as possible. If you want to ensure you get a refund, I'd suggest putting a smaller amount for credits - maybe $6,000 as you suggested. This will cause slightly more withholding than necessary, resulting in that refund you're looking forward to. You can also directly request additional withholding by putting a specific dollar amount in Step 4(c) of the form.

I struggled with this exact same W-4 situation last year! Try https://taxr.ai - it has a W-4 calculator that saved me tons of headache. I was so confused with the new format and trying to figure out if I should list all my kids or how to make sure I got a refund. Their tool asked me questions about my situation and then told me exactly what to put on each line of the W-4. It even explained WHY certain numbers should go in certain boxes so I actually understood what I was doing.

Just wanted to follow up about my experience with taxr.ai - I ended up trying it last week! The basic W-4 calculator WAS actually free and it was super helpful. It walked me through everything step by step and explained why I should put certain amounts in each section. I have a similar situation (3 kids, spouse with varying income) and it helped me figure out how to get a refund without overwithholding too much. Wish I'd known about this tool for my last job change!

If you're looking for help understanding the new W-4, I'd also recommend trying to call the IRS directly. BUT - good luck getting through lol. I tried for days and kept getting the "we're experiencing high call volume" message before being disconnected. Then I found https://claimyr.com which is this service that basically waits on hold with the IRS for you, then calls you when an actual human agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c. I was super skeptical but I had an IRS agent on the phone in under 45 minutes (after trying for literally days on my own). She walked me through each line of the W-4 based on my specific situation and I got everything sorted out.

I owe everyone here a major apology. After posting that skeptical comment about Claimyr, I decided to try it anyway out of desperation (was trying to resolve an issue with a missing tax document). I'm shocked to say it actually worked exactly as described. I tried calling the IRS 6 times over 2 weeks and never got through. Used this service yesterday, and I had an IRS agent on the phone in about an hour. They just called me when it was my turn and connected me. The agent answered my withholding questions and helped me figure out exactly what to put on my W-4. Honestly can't believe it was that simple after all my failed attempts.

You could also just use the IRS Tax Withholding Estimator on their website. It's free and walks you through everything step by step. Just google "IRS tax withholding estimator" and it'll be the first result. I've used it for years and it's pretty accurate.

Is anyone else kinda annoyed they changed the W-4 format? The old version with allowances/exemptions was so much simpler to understand. Now its like I need an accounting degree just to fill out a basic form!!!

Just to clarify something I haven't seen mentioned yet - if you're married filing jointly and your spouse doesn't work, make sure you check the box in Step 2(c) that says "If there are only two jobs total, you may check this box." That will help make the withholding more accurate. Also, keep in mind that if you want a refund of about $2,000, you could just put $6,000 for child tax credits instead of $8,000 as you suggested, OR you could add an extra withholding amount of about $80 per paycheck if you're paid biweekly (in Step 4c). Either approach would get you that February "bonus" you're looking for!

Thanks for all the helpful advice everyone! I'm leaning toward putting $6,000 for the child tax credits instead of the full $8,000 to ensure I get that refund. Just to make sure I understand - when I file my actual tax return next year, I'll still claim all 4 kids and get the full $8,000 credit regardless of what I put on the W-4, right? The W-4 just affects how much they take out of my paychecks during the year? Also @Emma Johnson, thanks for the tip about checking the box in Step 2(c) since my spouse doesn't work - I definitely would have missed that!

One more thing to consider - since you mentioned your household income is around $135K, you should be aware that the Child Tax Credit starts to phase out at $150K for married filing jointly (in 2025). You're well under that threshold, so you'll get the full $2,000 per child, but it's something to keep in mind if your income increases in future years. Also, with 4 kids, don't forget you might be eligible for the Child and Dependent Care Credit if you have any childcare expenses (even though your spouse stays home, you might have summer camps, after-school care, etc.). That's another credit that could affect your overall tax picture, though it won't change what you put on the W-4 since that credit can't be anticipated in withholding. Your plan to put $6,000 instead of $8,000 sounds solid for getting that refund you're looking for!