Is it true that you need to make 2,400 gross income before taxes are taken out?

[rjs]

ANSWER REVISED

No, it's not true. For a household employee in 2022, the employer had to withhold Social Security and Medicare taxes if the employee earned $2,400 or more. That might be where the $2,400 figure comes from. (The amount is $2,600 for 2023 and $2,700 for 2024.)

For any other employees, there is no fixed income level at which withholding starts. It would depend on your filing status, number of dependents, other income, deductions, etc. You fill out a Form W-4 and give it to your employer. The employer uses the information from the W-4 with some tables or formulas to determine how much tax, if any, to withhold. Social Security and Medicare taxes have to be withheld, even if no federal income tax is withheld.

[anhelarroyo]

Sorry let me correct my question, I claimed head of house hold with my two dependents and just noticed that they had not taken any federal taxes out, thats when I asked about it and they said they were not taken out because i did not make more then 2,400 per check. How would I fill out my w4 then so that taxes are taken out accordingly? This had never been a issue before 😕 

[rjs]

It might be that your income is low enough that filing as head of household with two dependents you don't have to pay any tax. Use the Tax Withholding Estimator on the IRS web site to figure out what to put on your W-4 form. It will show you how to adjust your withholding to get the approximate refund amount that you want.

[NCperson · Accepted solution]

@anhelarroyo the W-4 is set to mimic the tax return.  That means that if your income doesn't yield any tax liability on a tax return, then there is no withholdings on a pay check.

assuming both children are under 17 and you are filing HOH, then if your annual ncome is below $57,000, then your tax liability net of the tax credits for the children is zero.  So if your total year income is less than $57,000, there is no need to withhold and your refund / amt due in April will be faily close to zero. 

if you are paid 24 times a year and your gross income is $2400 per pay period that is quite close to the $57,000 I note above.  Not surprised there is no withholding.