Julie anticipates receiving a $500 credit for other dependents on her 2021 tax return. If she is not looking for a huge tax refund, how should Julie treat the credit when completing her 2021 Form W-4?

Julie anticipates receiving a $500 credit for other dependents on her 2021 tax return. If she is not looking for a huge tax refund, how should Julie treat the credit when completing her 2021 Form W-4?

Julie should complete Step 2 on her 2021 Form W-4 and use the Multiple Jobs Worksheet to calculate her adjustment.

Julie should complete Step 3 of her 2021 Form W-4.

Julie should use Step 4, Other Adjustments, on the 2021 Form W-4. She should enter the $500 of anticipated credit as a deduction on line 4b.

Julie should use Step 4, Other Adjustments, on the 2021 Form W-4 and enter the credit as a negative amount on line 4a, Other Income (not from jobs). Reducing her taxable income in this way will be virtually the same as applying the credit to her income.

Answer rating: 100% (QA)

Answer The answer is D Julie should use Step 4 Other Adjustments on the 20... View the full answer