More Take-Home Money for the Family

Quick Answers: Will Updating My W-4 Increase My Paycheck?

• The Child Tax Credit is going up to $2,200 per child, but many families will need to update their W-4 to see that reflected in their paycheck.
• The One Big Beautiful Bill Act (OBBBA) added new family benefits, like child savings accounts and enhanced dependent care credits. Your W-4 is how you unlock those benefits in real time.
• A "too big" refund means you're overpaying the IRS during the year.
• Use the IRS Tax Withholding Estimator and review your W-4 to make sure you're not overpaying.

I talked with a new client not long ago. Married. Two-year-old at home. And yet his W-4 was still marked as single, zero dependents. He was getting huge refund checks every spring, but the truth is he was overpaying the IRS thousands during the year. That money could have been covering groceries, daycare, or bills.

With the OBBBA now in effect, getting your W-4 right is the key to more take-home pay for your family.

How does the OBBBA help families?

Bigger Child Tax Credit: starting in 2025, the credit rises to $2,200 per child (subject to income phaseouts). If your W-4 doesn't reflect your dependents, you'll wait for a refund instead of seeing that money throughout the year.

Child savings accounts: for kids born between 2025 and 2028, the government will deposit $1,000.

Enhanced Dependent Care Credit: the maximum credit rate rises to 50 percent of childcare expenses, up from 35 percent.

Increased standard deduction (now permanent): $31,500 for joint filers and $15,750 for single filers for 2025.

New senior deduction (2025 to 2028): taxpayers 65+ qualify for an extra $6,000 deduction, which phases out as income rises.

How do I get more money for my family?

• Update your W-4. The IRS Tax Withholding Estimator can help you figure out the correct withholding. If you have self-employment income, capital gains, or itemized deductions, it's best to consult a professional.
• Get a review of your full situation. Married filing jointly? Dependents in daycare? Elderly parent at home? Let's make sure every piece of your life is reflected in your tax picture.
• Plan for 2025 and beyond. We'll talk about college savings (529 plans), estate planning, and how to position your family for maximum tax benefits.

FAQs

"How often should I update my W-4?"

At least once a year, and always after major life changes (marriage, divorce, new baby, job change, starting a side gig).

"If I change my W-4 now, will I owe more at tax time?"

Not necessarily. The aim is to get your withholding as close to your actual tax as possible, so you have neither a big refund nor a big bill.

"What happens if I don't update my W-4 after OBBBA?"

You'll likely miss seeing the increased credits and deductions in your take-home pay and wait until refund season instead.

"Can my employer help me fill out my W-4?"

Your employer can provide the form, but they can't give you personalized tax advice. Bring your most recent pay stub and tax return to your tax pro.

"I like getting a big refund. Should I still adjust my W-4?"

That's your choice, but a large refund is just your own money being returned, essentially an interest-free loan to the government.

"How do I adjust my W-4 if I work multiple jobs or my spouse also works?"

Use the "Multiple Jobs or Spouse Works" step on the W-4 for the highest-paying job. The IRS Withholding Estimator lets you enter income from all sources for a more accurate picture, or we can work through it with you.