Answer:
Explanation: A W-4 form is a tax document that employees fill out when they begin a new job or when their personal or financial situation changes. It tells the employer how much to withhold from an employee’s paycheck for federal income tax purposes1.
If Maxwell and his spouse were to have another child, but all other aspects of their life stayed the same, they would need to change the following entries on a new W-4 form:
Step 3: Claim Dependents. They would need to increase the number of qualifying children under age 17 by one and multiply it by $2,000. This would increase their child tax credit and reduce their withholding amount.
Step 4: Other Adjustments (optional). They may choose to make other adjustments to their withholding, such as reporting other income not subject to withholding, claiming deductions other than the standard deduction, or requesting additional withholding. These adjustments are optional and depend on their specific tax situation.
They do not need to change any other entries on the W-4 form, such as their personal information, filing status, or multiple jobs or spouse works. However, they may want to review these entries periodically to make sure they are still accurate and reflect their current tax situation.