One W-4 Line Is Worth About $85 a Check: The Child Tax Credit and Step 3
From PaycheckZip · 7:47
Show by PaycheckZip
If you have a child under 17, Step 3 of the W-4 is where the $2,200 child tax credit goes. On a $60,000 salary it cuts federal withholding from about $193 to $108 a check: about $85 more take-home, or $2,200 a year in your paychecks instead of your refund. We cover two kids, the $500 credit for other dependents, why your refund shrinks by the same amount, and why married couples claim each child on only one W-4. Run your own numbers free: https://paycheckzip.com/paycheck-calculator Every state's paycheck calculator: https://paycheckzip.com Chapters 0:00 Cold Open 0:16 Welcome 1:06 Step 3 Left Blank 1:43 Enter One Child 2:19 Why It's Exactly That Much 2:56 Two Kids, or an Older Dependent 3:36 Your Refund Shrinks by the Same Amount 4:12 Both Parents Work? Claim It Once 4:56 Who Counts 5:41 A Bigger Check, or a Bigger Refund? 6:10 What to Do Now 6:48 Recap 7:24 Outro How these numbers were made: PaycheckZip's calculator with 2026 IRS Publication 15-T withholding and each state's 2026 rules. Single filer in Texas (no state income tax) with a $60,000 salary paid every two weeks, unless the video says married filing jointly; 2026 Form W-4 with Step 3 as shown. The 2026 child tax credit ($2,200 per child under 17) and the $500 credit for other dependents are from the IRS as of October 2026. Estimates from PaycheckZip's calculator, not tax advice. Estimates for education, not tax or legal advice. There's a video version of this episode on the PaycheckZip YouTube channel, with every pay stub line on screen. Narration is AI-generated (Kokoro TTS). Music "Friday Morning" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/ "Fresh Air" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/ "Reminiscing" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/ "Carefree" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/ "Almost Bliss" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 4.0 License http://creativecommons.org/licenses/by/4.0/
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