My wife is going to stop working soon, as our first baby is due in September.
First, is this correct : I will get a $1000 child tax credit for this baby, plus $3800 will be deducted from my taxable income due to having a dependent (marginal rate 15%.) Therefore I can expect that this year's and the next 17 years' taxes will be reduced by 1000+ .15(3800) = $1570
Second, if I have the first one right, how many withholding allowances should I be claiming to my employer? Currently I have two - should I make that three? Or more? My goal is to have zero tax return and zero owed at the end of the year.