topic Federal W4 in Get your taxes done using TurboTax

Federal W4

Tax_question10 — Thu, 18 Feb 2021 21:13:00 GMT

Hi I am filling the federal W4 for my new job what I need to write for step 4, please.

What I need to select for "If Exempt from federal taxes, please select here "

Re: Federal W4

JohnW152 — Thu, 18 Feb 2021 21:38:40 GMT

You can claim exemption from withholding for 2021 only if you meet both of these conditions:

You had no federal income tax liability in 2020, and
You expect to have no federal income tax liability in 2021.

If both of those statements aren't true, you shouldn't claim exempt, and just leave the dropdown as -- Make a Selection --.

Please see Exemption from withholding in the instructions for Form W-4.

Re: Federal W4

Tax_question10 — Mon, 22 Feb 2021 23:27:04 GMT

@JohnW152

My spouse income was approx. $25,000 and I earned $3000 last year.

and My spouse is expected to make the same amount this year as well.

Thanks

Re: Federal W4

WendyN2 — Tue, 23 Feb 2021 00:39:34 GMT

Given the information, with no other deductions/etc. listed, I would have to assume just the SD for you both which, if $28k is what you again believe will be your combined income, then your "taxable income" ($28k - SD MFJ $24.8k = ) will be $3,200.

For MFJ, with NO other information made available to me, you'd only be liable for SS and Medicare taxes, which will total approximately $765. Filling out "Exempt" on your W4 would not take out for this, and then you would owe. An option for you, that I HIGHLY suggest, is to fill out "exempt', then in the additional withholding amount line item at the near bottom right, ask for $35 per pay check to be withheld from ONLY ONE W4 (not both of you) then at the end of the year you will be covered for your FICA (SS & Medi) tax liability.

Your Income Taxes Breakdown

Tax Type Marginal Tax Rate Effective Tax Rate 2020 Taxes*

Federal 0.00% 0.00% $ -0-

FICA 7.65% 7.65% $765

State 0.00% 0.00% $ -0-

Local 0.00% 0.00% $ -0-

Total 7.65% $765

Income After Taxes $9,235

Retirement Contributions $0