@sierra3431 wrote:
Yes they where both taken out. I did speak to my hr and she said bc I filed held house and claimed 2 that,that is the reason. Something changed last year with all that. I don’t have to pay in or anything but fed taxes are still not coming out in 2022 paychecks. I’m wondering if I need to file single with 0 dependents now??? I just don’t want to owe the irs if this continues.
What?
The W-4 is only a form to estimate your tax withholding. You need to file you tax return based on your actual facts (income, dependents, and so on) no matter what your W-4 says or what your withholding is.
Do you mean change your W-4 to have less tax taken out? That's up to you. But it's not necessary. The formula used by your employer to determine your withholding "floats" with your income. If your income for a certain pay period is high enough that you would be expected to owe tax, you will have the right amount of withholding taken out. If your Income is lower, you will have less or no tax taken out. The formula is self-adjusting, you shouldn't have to do anything.
There was a change in 2019, the formula used with the old W-4 forms gave most people a refund. The new formula is more accurate, and you are more likely to get a smaller refund or break even. This is good for most people, because it's better to have the money in your weekly pay check instead of having to ask the IRS to send it to you at the end of the year (especially when they are backlogged or close down for months due to a pandemic).
For 2021, if you changed your withholding to HOH plus 1, you would start having taxes taken out at an annual salary of around $38,000 ($730 per week). If you changed all the way down to single plus 0, your taxes would start if your wages were more than $243 per week. But at a gross salary of $40,000, you would be giving up $60 per week, or $2900 per year, to the IRS, that you would get back as a refund (plus a little extra refund for the child tax credit). Would you rather have $60 a week more for necessities, or a $2900 refund?
