Question

I'm trying to designate a monetary amount for my dependents because of the new W4 forms. If I put $2500 into Step 3, how will this effect my paycheck?

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The amount of Federal withholding will be less because you have put an amount into Step 3 of the new W-4 form.

If you find at a different time you would like to have your Federal Withholding increased you can file a new W-4 with your employer.

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