Getting about $2200 back from Federal and $1300 back from NY State. Claimed 2 for both last year and having 2nd kid this year. Should I bump to 3 or keep as is?

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Depends, are you one of those ppl who needs the govt to help you save money? Or do you prefer to receive max income and direct your own money?

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Thought the new W-4 doesn’t allow you to adjust dependents anymore. There’s no longer 1,2, etc...on the form

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Ask yourself if that $3500 could have helped you achieve a goal during the year. If it was going to sit in a 1.5% APY savings account, decide if $50 in interest is worth changing.

I lowered my exemptions (old form) and then had an extra $150 per paycheck deducted for Fed. It was the only way I could get it the way I wanted it which is owe about $100

With another dependent, and another $2k credit, I would estimate your taxes and adjust your withholdings to ~$500-$1000 either owed to you or due to combined Fed /State . You will likely need the extra cash flow with wife off work and day care

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