@brittmorrow13 - here is why the withholdings are so low. This is what your tax return would look like:
Income: $38,000
less: standard deduction: $21,900 (filing HOH)
taxable Income: $16,100
tax: $1613
less: Child Tax Credit (assumes both children are under 17 years old) = $4000
less: Earned income tax credit: $3731
refund: $6,118 PLUS whatever is withheld on your paycheck.
so even if there are no withholdings, you still get a refund. So the IRS says there is no reason to withhold.
Suggest changing your W-4 so that you check HOH in step 1 and $4000 / 2 children under 17 in step 3. That will prevent any withholdings from occurring, which is correct for this situation.
