How many allowances should I claim on my W4 form with 3 kids and non-working spouse?

The new W4 form doesn't actually use "allowances" anymore - that system was replaced in 2020 with a different approach. The current W4 has you claim tax credits and deductions directly rather than converting them to allowances. For your situation (married, 3 kids, non-working spouse), here's what you should do: First, check "Married filing jointly" in Step 1. Then in Step 2, you can skip this since you only have one job. For Step 3, you'll claim your children by multiplying $2000 by 3 kids, so enter $6000 there. Step 4 is where you can make adjustments - if you want to have less tax withheld (similar to claiming more "allowances" in the old system), you would put an amount in 4b for deductions. Your mortgage interest might be deductible if you itemize, but you'd need to estimate your total itemized deductions versus the standard deduction to know if that's beneficial.

Hey, I had similar confusion with the W4 and found this amazing AI tool that helped clear everything up. Check out https://taxr.ai - it analyzes your specific tax situation and gives you personalized guidance on how to fill out your W4 to get the results you want. I uploaded a picture of my old W4 and it explained exactly what I needed to do with the new form to get the same outcome. The best part is it explains everything in plain English and shows you which boxes to fill out based on your specific situation. No more guessing about allowances or trying to convert old rules to the new system.

Just wanted to follow up - I tried taxr.ai after asking about it and WOW! It really did handle my complicated situation with my side business and rental income. It broke down exactly how much extra withholding I should add on line 4c to cover my additional income, and explained how to account for business expenses that would reduce what I need to withhold. The system actually showed me that I've been overwithholding by about $4,300 annually! It gave me specific numbers to put on my new W4 that would keep me from getting a huge refund while ensuring I don't underpay. Seriously worth checking out if you're confused about the new W4 system.

If you're still having trouble with your W4 and need to talk to someone at the IRS for official guidance, good luck getting through on their phone lines! I spent HOURS trying to get someone on the phone about my W4 questions. Finally found this service called Claimyr that got me through to an actual IRS agent in under 20 minutes: https://claimyr.com You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent was able to walk me through exactly how to fill out my W4 for my specific situation. Turns out I had been doing it wrong for years! They explained how the child tax credits work on the new form and how to account for my mortgage interest.

I need to eat my words. After dismissing that Claimyr service as a scam, I got absolutely nowhere trying to reach the IRS myself for a week straight. Out of desperation, I finally tried it - and I was connected to an actual IRS agent in 15 minutes. The agent cleared up my W4 confusion completely. For my situation (similar to OP with 3 kids), they explained that the child tax credits are automatically accounted for in Step 3, and I needed to use Step 4 to adjust for my mortgage interest deduction. They also explained why the "allowances" concept is gone and how the new system actually gives me more control. I'm still shocked at how fast I got through compared to my previous attempts. Saved me literally hours of frustration.

One thing nobody's mentioned yet is that you can use the IRS Tax Withholding Estimator online. It's actually pretty good now and will tell you exactly what to put on each line of the W4. Just google "IRS Tax Withholding Estimator" and it should be the first result. You'll need your most recent paystub and an estimate of your annual income, but it's worth the effort. It will account for your kids, filing status, and even your mortgage interest if you plan to itemize deductions.

Remember that your W4 settings can be changed throughout the year if needed! I usually start conservative (withhold a bit more) at the beginning of the year, then around September I'll check where I stand and adjust if I'm over-withholding.

Just to add some perspective from someone who's been through this transition - the new W4 system is actually much better once you understand it, even though it seems confusing at first. For your specific situation (married, 3 kids, non-working spouse), here's a simple approach: Fill out Steps 1-3 normally (married filing jointly, claim your 3 children for $6,000 in Step 3). Then for Step 4, if you want less withholding, you can estimate your itemized deductions. With a $1,350 mortgage payment, you're probably paying around $16,000+ annually in mortgage interest, which along with state/local taxes might put you above the standard deduction ($27,700 for married filing jointly in 2024). If you're comfortable owing a small amount, you could put something like $5,000-8,000 in Step 4b as an estimate of deductions above the standard deduction. This would reduce your withholding similar to claiming additional allowances in the old system. Start conservatively and adjust later in the year if needed!

As someone who recently went through this same confusion, I can share what finally clicked for me. The key insight is that the new W4 is designed to be more precise than the old allowance system, but it requires you to think differently. For your situation, here's what I'd recommend: Start with the basics - married filing jointly in Step 1, skip Step 2 since you're the only worker, and definitely claim your $6,000 for three kids in Step 3. That's already going to significantly reduce your withholding compared to someone without children. For Step 4, here's the thing about your mortgage - with a $1,350 monthly payment, you're likely paying around $12,000-14,000 in interest annually. However, with the current standard deduction being $27,700 for married filing jointly, you'd need over $27,700 in total itemized deductions to benefit from itemizing. Unless you have high state taxes, significant charitable donations, or other major deductions, you'll probably take the standard deduction anyway. My advice? Start by filling out just Steps 1-3 and see how your paychecks look. The child tax credits alone will reduce your withholding substantially. You can always adjust later if you're getting too big of a refund. This approach has worked well for me and eliminates the guesswork about deductions you may not even use.

I went through this exact same confusion last year! The transition from allowances to the new W4 system really threw me off too. After reading through all these great responses, I want to add one more perspective that might help. Since you mentioned you don't mind owing a small amount at tax time, here's what worked for me in a similar situation: I filled out Steps 1-3 exactly as everyone suggested (married filing jointly, $6,000 for three kids in Step 3), but then I added about $2,000 in Step 4b to reduce my withholding slightly. My reasoning was that with three kids, the child tax credits are substantial ($6,000 total), but I wanted to ensure I wasn't over-withholding. The $2,000 in 4b was conservative enough that I wouldn't risk a big tax bill, but it reduced my withholding by roughly $150-200 per month, which felt right. After a full year with this setup, I ended up owing about $300 at tax time - exactly the small amount I was comfortable with. The key is that you can always adjust mid-year if your first few paychecks show you're still over-withholding. One last tip: keep your last paystub from your old W4 setting so you can compare the federal withholding amounts. That gave me confidence I was heading in the right direction!

I'm dealing with a very similar situation and this thread has been incredibly helpful! I'm also married with 3 kids and a non-working spouse, but I've been putting off updating my W4 because I was so confused about the new system. Reading through everyone's explanations, I think I finally understand that the "allowances" concept is completely gone and I need to stop trying to convert my old setup. The advice about starting with just Steps 1-3 (married filing jointly + $6,000 for the kids) and then monitoring my paychecks makes so much sense. One thing I'm still wondering about - for those of you who made the transition, did you notice a significant change in your refund amounts compared to previous years? I used to consistently get around $1,500 back each year with my old W4 setup, and I'm trying to figure out if I should expect something similar or if the new system tends to be more or less accurate in general. Also, has anyone had success using both the IRS withholding estimator AND one of those AI tools mentioned earlier? I'm thinking of trying both approaches to double-check my math before submitting my new W4.