How do I enter Step3: Claim dependents from 2020 W4 to Quickbooks.

 Thanks for providing a screenshot, @DEVINR.

Yes, you'll need to enter the information asked if they apply to you to accurately match your liability.  You can override the amount if needed by right-clicking. 

To ensure correct calculations, I encouraged you to use the Tax Withholding Estimator available at www.irs.gov/W4app. You can also consult your accountant or tax adviser for assistance.  

For more details about the 2020 Form W-4, you can refer to this link: FAQs on the 2020 Form W-4.

Please let me know if you have further questions. I’ll be here to help. Wishing you and your business continued success!

So we are to enter the $2000 for 1 dependent, $4000 for 2, etc...   What do we enter in the State section?

So it is correct to enter $2000 for 1 dependent?  What do we enter in the State section?

For both the new Federal W-4 and state W-4 equivalents, QuickBooks fields should match the W-4.

If they have not, have the employees fill out your state's equivalent form as well as the Federal form. Or, if they don't fill out a state form, don't change the state field values.

I am a bit confused as well.  I have an employee who checked box c and step 2 (multiple jobs or spouse works) and in Box #3 entered $4,000 for 2 dependents do I actually enter $4,000.00 in Quickbooks for box 3.  Seems like no federal taxes may be deducted.  Is that correct?

We suggest having your employee fill up the Form W-4, pipeman.

You might want to visit the IRS website for more information about the child tax credit: About Publication 972, Child Tax Credit.

Learn about the new changes to the Federal W-4 and how to enter and print a W-4 for employees in QuickBooks.

We'll be around if you have any other concerns. Have a good one.

So in DevinR example - would $9,000 be entered in QB's on the dependent line?

Yes, you can enter $9,000 on the dependent line in QuickBooks, @PDController.

I'd still suggest either using the Tax Withholding Estimator or consulting your accountant to ensure you have the correct calculations. Also, as per IRS guidelines, there are information you'll need when determining whom you claim as a dependent: 

• Marital status, relationship to the dependent, and the amount of support provided.
• Basic income information such as your adjusted gross income.

Once verified, perform the steps outlined in the QuickBooks Desktop Payroll section under Enter a W-4 through this article: What's Changing With The Federal W-4?. 

You can always visit this website: IRS Guide. This link provides you answers to the general, employee, employer FAQs on the 2020 Form W-4. 

I'm always here to help if you need anything else. Take care always, @PDController.

Your response is vague and exhausting.

As  moderators, and not just you other moderators included, I expect a clear response.

As others have written, we just need a clear am I entering $6,000, or am I doing math and entering 3 dependents.

Not how to use the tax calculator, or go to the IRS.gov website for updates about the 2020 W4.

They do not offer any information on how to enter data into quickbooks.

Again the question is How do I enter Step3: Claim dependents from 2020 W4 to Quickbooks.

Your response is vague and exhausting.

As  moderators, and not just you other moderators included, I expect a clear response.

As others have written, we just need a clear am I entering $6,000, or am I doing math and entering 3 dependents.

Not how to use the tax calculator, or go to the IRS.gov website for updates about the 2020 W4.

They do not offer any information on how to enter data into quickbooks.

Your response is vague and exhausting.

As  moderators, and not just you other moderators included, I expect a clear response.

As others have written, we just need a clear am I entering $6,000, or am I doing math and entering 3 dependents.

Not how to use the tax calculator, or go to the IRS.gov website for updates about the 2020 W4.

They do not offer any information on how to enter data into quickbooks.

Its funny how when you read an answer that may not be right you have to respond and not accept.

I need quickbooks and not even through this message board, to verify how to enter dependents in case the IRS said I did something wrong.

I played along with a backup, entering different information and I will tell you, no way is entering $2,000 or more making sense.  It results in no federal taxes being taken out. 

When using the new W-4 form, just as before with the old one, you should enter into QB whatever the employee put on their W-4.  (It is not for you as the employer to judge.)

Hi DEVINR,  Were you able to get any answers on this?  I have the same questions and running into the same issue with no federal withholding being deducted from my employees paycheck.  I can't seem to find a clear answer on this thread or anywhere else in the Q&A for that matter.  So frustrating!

Thanks for joining this thread, NellyB.

Payroll tax calculations is derived from the payroll data we've entered in QuickBooks. Let's make sure we've downloaded the latest payroll tax table to make sure that QuickBooks will calculate the taxes when processing payroll.

Also, QuickBooks calculates the federal withholding based on these factors:

• Taxable wages
• Number of allowances/dependents
• Pay frequency
• Filing status

We'll need to confirm the employee's information is set up properly. Please go through the IRS Publication 15 to figure out the appropriate withholding amount.

If you need anything else, you can always go back into this thread.

My employee did fill out the W-4 that is why I am asking.  Employee wrote in $4,000 in Step 3.  I know what the IRS is saying, what I am asking is what do I enter in Quickbooks for this.

Why would we consult with our accountant to be sure we have the correct calculation on withholding from an employee.  Would it not be the employee's responsibility to be sure they have completed the W-4 correctly?  Also are we not paying for the payroll software program to rely on  Quickbooks to calculate the withholding correctly based on what has been entered.  This last item is why we all want to be sure we are entering the correct information into Quickbooks based on how it is calculating what we enter.  It seems there is no where in QB or on this thread where we are being told what exactly to enter into QB based on what is on the new W-4.  I understand it seems obvious that if the W-4 has $9,000.00 hand written in step 3 we would enter $9,000 in that box in Quickbooks but we all just want to be sure that is the intent when QB wrote the program for the new W-4.  Hopefully this all made sense.

I just can't understand why I can't get a simple answer.

Am I entering $2,000 or one dependent.

Hey there, @DEVINR. Thanks for updating us.

Step 3 refers to the Child Tax Credit. If the employee's income will be $200,000 or less ($400,000 or less if married filing jointly), you'll want to multiply the number of children younger than 17 by $2,000. So, for instance, if they have 3 children under the age of 17, the amount entered should be $6,000. I've also included a written form needed to calculate the amount for this form:

Number of Children (17 years or younger) x $2,000 = Amount to be entered on Step 3 of 2020 W-4.

I hope this clears things up for you! Please let me know if there's anything else I can do to be of assistance. Cheers to a safe and productive week ahead.

I have entered 6,000.00 in Step 3 in QB and my employee called to let me know that no federal taxes were deducted on his last check.   Not sure at this point what QB is looking for because entering the amount from the form did not work.  Any help would be appreciated. Thanks!

Let's verify if you have entered the correct tax withheld amount from your employees paycheck, BLESSED2020.

You can use the tax estimator to help you do it. However, if you're still unable to enter an amount, it would be best to reach out to our Customer Support team. They can take a look at your company file and investigate this further. Here's how:

1. Select QuickBooks Desktop Help from the Help menu.
2. Click Contact Us.
3. Enter Child Tax Credit in the Ask a question field.
4. Click Continue.
5. From there, select either Start messaging or Get a callback.

Please let me know how things work on your end. I'll be here to help you out.

It looks like the tax estimator is for the employee not the employer.  We are just asking what the employer puts in the box.

Hi there, @pipeman. 

Thank you for joining to the thread. 

W-4 is employee's withholding allowance certificate. The way you fill out this form determines how much tax your employer will withhold from your paycheck. You can follow the steps provided by Michael K above.  

Though, QuickBooks calculates the federal withholding based on these 4 factors:

• Number of allowances/dependents
• Taxable wages 
• Filing status 
• Pay frequency

 We'll need to verify the employee's details to make sure it set up accurate.

You can also read this article for more detailed and information about: Publication 15 (Circular E), Employer's Tax Guide. 

Please get back to me if you have further concerns about Taxes. I'm here to lend you a hand. Have a great day!

QuickBooks fields mirror the form.  Enter the same numbers into QB as you see on the form.  This is the same model as the previous form.