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DEVINR
January 13, 2020
Question

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

  • January 13, 2020
  • 7 replies
  • 0 views

I know how to enter information for new employees, so please do not forward advice on that.

 

My question is how am i transferring the information from Step 3 on the 2020 W4 form to  quickbooks.  In the past it was simple, employee filled out withhold 1 dependent, you wrote 1 dependent in quickbooks.

 

Now for example on the 2020 W4: Step 3 Claim dependents, it wants me to enter the total amount qualifying children under 17 and multiply that by $2,000.00.  how do I enter that information in quickbooks.

 

I'm guessing the answer is obvious, but I just want to be accurate.

 

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    7 replies

    IntuitLily
    IntuitLily
    January 13, 2020

     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!

    M
    ME51
    January 13, 2020

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

      BigRedConsulting
      BigRedConsulting
      January 13, 2020

      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.

       

       

      P
      pipeman
      January 14, 2020

      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?

        JaneD
        JaneD
        January 14, 2020

        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.

        D
        DEVINRAuthor
        January 15, 2020

        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.

          P
          PDController
          January 15, 2020

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

          R
          RaymondJayO
          January 15, 2020

          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.

          D
          DEVINRAuthor
          January 15, 2020

          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. 

            Michael K
            Michael K
            January 17, 2020

            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.

              B
              BLESSED2020
              January 17, 2020

              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!

                Adrian_A
                Adrian_A
                January 17, 2020

                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.

                D
                DEVINRAuthor
                January 25, 2020

                ********************FOLLOW UP*********************

                 

                Spoke with the IRS, 01/24/2020 - 5:42PM (central time)

                 

                The phone agent(s) are not familiar with / can not offer any advice on how how to fill out the 2020 W4.

                We need to go to the irs.gov website and follow the instructions on how to fill out the form, (employee and employer).

                 

                They are not familiar with how any payroll software processes the new forms.

                 

                Asked if they can give me an address for my local business office, because the only information at irs.gov is for personal taxpayer information.

                Agent said call the local personal information office and they should be able to assist with questions for Business's or forward you to someone who can.

                 

                Agent ended the conversion with a chuckle and good luck.

                "They may also answer federal business questions, but probably not on the 2020 W4.

                 

                SideNote:

                I've watched the webinar at https://www.irsvideos.gov/Webinars/UnderstandingThe2020FormW4AndHowToUseItToCalculateWithholding

                 

                My only issue with the new form is how much time is required from employee and employer to fill out.

                 

                  C
                  Costless Carpet
                  January 12, 2021

                  The number needs to be in dollar amount, so 1 dependent under 17 = 2000 then if there are other dependents at 500 each say 2 = 1000 you would add all that together and put in QB $3000.00 would go in the claim dependents section. 

                  P
                  pattys1983
                  March 7, 2024

                  On the 2019 form, there was a part where we could put 1 dependent as yourself.  For the 2020 W4 form, should we consider that amount $500.00 as other dependents?

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