Line D is for the number of dependents you expect to claim when you file your tax return.  You should keep in mind that there is a phase-out of the deduction for personal exemptions if your adjusted gross income (AGI) is above a certain amount, based on your filing status.  If your expected AGI is over the maximum amount of the phase-out bracket for your filing status, you should enter “0” on line D.  If your expected AGI is within the phase-out bracket, there is a worksheet in Internal Revenue Service (IRS) Publication 505, Tax Withholding and Estimated Tax, to prorate the number of allowances you can claim for your dependent exemptions.

You can claim an additional allowance on line E if you expect to qualify to file as head of household.  To qualify you must be unmarried and must have paid more than half the cost of keeping up a home that was the main home all year for your parent who you can claim as a dependent, or a home that you lived in for more than half the year with your qualifying child or other dependent.

On line F you should claim an allowance if you expect to have expenses of at least $1,500 during the year to have someone care for your child under age 13, or to care for your spouse or other dependent who is not capable of caring for him or herself, so that you can work or look for work.  These expenses can be taken as a credit on your tax return, directly reducing your tax liability, so they are taken into account for withholding purposes.  You can claim an allowance here, or you can take the credit into account on the Deductions and Adjustments Worksheet.

On line G you can claim extra allowances for the child tax credit, which also directly reduces your tax liability.  The credit, and therefore the number of allowances for withholding tax purposes, depends on the level of your income and the number of eligible children.  The income levels are subject to change, and are included in the worksheet itself, in line G.  If the child is your son, daughter, stepchild, grandchild, adopted child or foster child who you can claim as a dependent, is under age 17, and is a U.S. citizen or resident, you can take the child tax credit.  As in the case of the child or dependent care expenses credit on line F, you can claim an allowance here on line G for the child tax credit, or you can take the credit into account in the Deductions and Adjustments Worksheet.