Dependent

A dependent is a qualifying child or qualifying relative you can claim on your tax return. On a paycheck, dependents matter through Step 3 of Form W-4, where they lower the federal income tax withheld.

Step 3 multiplies each child under 17 and each other dependent by the credit amounts printed on that year's form, then subtracts the total from the year's withholding. Spread over the year, that adds money to every check. The W-4 guide shows where to enter them.

Only one parent should claim a given child on a W-4, or both jobs will under-withhold. The old federal dependent allowance ended with the 2020 form, though some states still count dependents as withholding allowances. See how many allowances to claim and filing status.