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@TaxGuyBill wrote:

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@rbynaker wrote:

If they already get the extra $2K via reduced withholding AND now a $1K advance, they're going to have a balance due. 

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Hypothetically, payroll should have increased withholding because they are supposed to compensate for the Advance credit.  But I haven't seen anything from the IRS about that yet.

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Sure, but it took the IRS what, two and a half years? to adjust the W-4 for the TCJA changes.  I don't see them getting anywhere with changes to the W-4 in time for them to be useful.  Even if they just change the instructions to "worksheet" the new box 3 amount it takes time to get all of that approved.  There's no way an employer has enough data to determine how much advance CTC an employee will get or even how much their CTC is going to be with the various phase-outs.  If I'm an employer I'm certainly not going to make guesses as to what an employee's revised box 3 number should be.  So at best I think an employee is going to have to use a worksheet hack to make changes to the box 3 amount on the existing W-4 form and resubmit.  Most employers I've seen have at least a pay period lag (and I think the IRC allows up to 30 days to change the withholding after the W-4 is submitted).  So maybe this gets changed in time for the December withholding to be adjusted?  Sure I'm more than a bit cynical here but the IRS doesn't exactly have a great track record.