What to do if employer did not withhold taxes?

[HWells327]

My employer did not withhold any state (Kentucky) or federal taxes from my check for the first few months. WHat should I do to avoid penalties at tax time? 

[xmasbaby0]

For the first few months?   Did the employer begin to withhold tax as the year went on?   All you can do is enter the W-2 exactly as it appears when you receive it and see if enough was withheld.   If they did not withhold enough then you might owe tax due when you file your tax return. You have not mentioned any other details about your situation such as your income, your filing status or whether you have dependents, so we cannot guess whether you will owe.

[xmasbaby0]

Try the taxcaster tool to see where you might stand

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

[HWells327]

Thank you! Yes, they have since started to withhold taxes. I make less than $50k/year. My HR convinced me not to make any catch up payments but I'm nervous that I will get a penalty come tax time and would rather just make some extra payments or a lump sum payment up front is possible. 

[VolvoGirl]

Yes you can send in an Estimated payment if you want.  

Here are the blank estimate forms and instructions for federal.  You need to go to your state's website to get theirs.

https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Or you can pay directly on the IRS website https://www.irs.gov/payments

Be sure to pick the right kind of payment and year.....2022 Estimate

[xmasbaby0]

You could do that---but first try using the tool if you have your year to date amounts and see if it looks like you will owe.

[TomD8]

Another option:  just have your employer increase your withholdings for the rest of the year to make up for the amounts that weren't withheld.

[Opus 17]

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@HWells327 wrote:

Thank you! Yes, they have since started to withhold taxes. I make less than $50k/year. My HR convinced me not to make any catch up payments but I'm nervous that I will get a penalty come tax time and would rather just make some extra payments or a lump sum payment up front is possible. 

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I suspect you are over-thinking it.  Unless they admit a problem with their system, the withholding may be correct, especially if you are in an hourly job and were not working very many hours at the start.  

You can use the IRS withholding calculator here.

https://www.irs.gov/individuals/tax-withholding-estimator

It will advise you if you are going to be short, and will suggest a payment amount or a temporary adjustment to your withholding to catch up.

You will only be penalized if you owe more than $1000 when you file your return.  You also won't be penalized if your withholding was at least as much as last years tax liability; for practical purposes, that means if you had no income last year (like maybe you just started working), you won't be penalized this year no matter how short you are.  

Single, no dependents, $50K of income, your federal tax would be about $4000.  Will your withholding catch up to that by December?