I have 2 kids, my husband and I both claim zero dependents, we pay day care and receive child tax credit. we are now being audited to provide proof of our filing status, w4, child care provider info and child tax credit. we have always claimed zero, so that more money comes out now so we dont owe later. is this ok to do, and if not, why did it take so long to catch and now we may owe the irs a huge sum of money....
Tax question on W-4?
Something does not make sense. If both of you are claiming 0 on your w-4 and have 2 kids you are probably having too much money being taken out of your pay checks for taxes. If this is causing you to get a huge refund every year, it may have %26quot;flagged%26quot; your return for an audit.
An audit does not automatically mean you owe. As long as you have proof for everything you listed on your actual taxes you should be fine.
However, if you are really getting back more than a thousand or so a year you might want to readjust at least one of your w-4%26#039;s to get more throughout the year.
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