<human>: Good evening,

My wife and I just had a baby and I am trying to update my W-4 allowances to the proper amount. My wife is not employed and I am the sole-provider for her and our new baby. Previously I just had 2 allowances, 1 for me, and 1 for her... I thought it was as simple as that and planned to just up it to 3 with the new baby's arrival.

However, I used this calculator on IRS.gov and it says I should take SIXTEEN allowances... that just sounds insane to me, so I need your help. 

16 essentially puts me at owing (nothing) but I am afraid if I do 16 I will end up underpaying somehow and slapped with a fine. I was given advice from a CPA friend to do 15 or 14 and just "see what happens" this year and adjust next year if needed. I wanted to get some more opinions.

- Is 16 allowances insane for a family of 3 (2 adults 1 child) on one income? If it's relevant my salary is about $69k.

- Am I at risk of underpaying and being fined if I do, say, 15 allowances?

- What is this child tax credit and what does it mean to someone like me? Following just the W-4 form it seems like my allowances should be about 5... (just by reading the boxes and doing my tallies)
- How many allowances should I take?

Condense the text into a few key points
<bot>: The IRS.gov withholdings calculator says I should take 16 allowances. That seems really high to me. I am the sole-provider for myself, wife, and new baby.  (see bullet questions)