Hi
I need suggestion regarding including my newborn child as dependent in tax return.

Which one will be the best option. First, fill up w4 and send it to the employer so that they adjust the tax in my pay check or second, I am not going to send new w4 for my child to my employer and claim child as dependent from in my tax return. I would prefer second option. Can I do it? But what will be the drawbacks.. Please suggest.
Thanks
-abar

Only difference is that employer will deduct less income taxes if you file a new W4 with more allowances. When you complete your tax return, your refund will be lower or you may have a tax due.

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Originally Posted by Abar

Hi
I need suggestion regarding including my newborn child as dependent in tax return.

Which one will be the best option. First, fill up w4 and send it to the employer so that they adjust the tax in my pay check or second, i am not going to send new w4 for my child to my employer and claim child as dependent from in my tax return. I would prefer second option. Can I do it? But what will be the drawbacks..Please suggest.
Thanks
-abar

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There is a simple answer to this question. The amount of tax you save is not going to change. The only thing that will change is whether you will receive a little more in your pay check each time or a one single amount at the end of the year. It's usually better to have the money earlier rather than let the government have it until the end of the year when you file your tax return.

Thanks MukatA and The Texas Tax Expert for your suggestion.