My w2 says theres $0 held in federal, but $226/state and income is $15456. Is my refund AFTER the IRS takes their due amount?

[Lisa995 · Accepted solution]

Any refund you have coming will be computed on your tax return.  The fact that you have zero withheld for federal means you will probably not see any refund, but will end up owing taxes on the tax return.

You need to go to your employer and ask to complete a new W-4 and make sure you've chosen the correct number of allowances.  If you are single with no dependents, you shouldn't be claiming more than 1 allowance if you want to receive a refund at the end of the year.

[jessicabhill92]

I'm single but claim 4. It shows a $4,314 refund with putting "$0" into the federal box. When I put a random # in the federal box it goes up.

[jessicabhill92]

I am HOH, myself, my girlfriend and my son.

[jessicabhill92]

Yes you're right the EIC for one child is $39,000. So does that technically mean I was exempt from federal tax withholdings?

[Lisa995]

Ok, so you must have children and are receiving the Earned Income Credit.  

Yes, if you had more federal withholding it would have been refunded to you.

[Lisa995]

Yes, you don't "need" any federal withholding in your situation.

[jessicabhill92]

OK thank you I was worried for a minute! You've been very helpful!

[kimberleegiese]

If you have kids you should still get something back

[jessicabhill92]

We do we have a son. I'm contacting my employer today I was just curious if the refund amount was after the federal govt got their share out of it since I know that usually means you have to pay

[Lisa995]

The federal government didn't get any "share" of taxes from you.  They've given you free money in the form of earned income credit since your income is so low.

[jessicabhill92]

OK well I switched jobs in September and my new jobs w2 shows federal taxes withheld. That means I'll be getting that back, correct? Since I was under the EIC limit?

[Lisa995]

Yes, if your income remains similar, any federal withholding on your paycheck will end up being refunded back to you when you file taxes next year.

[jessicabhill92]

OK thank you!

[DianeC958]

If you filed your W-4 for 2019 with zero allowances then your take home pay would be $61,640.

The employer should have withheld $6,356 for Federal if you claimed 0 allowances on your

W-4.

Since you have 3 children under the age of 17 you do have a $6,000 credit for your Federal tax liability.

So even if there was no Federal tax withheld you would still receive a refund.