Why are no federal taxes being withheld from my paycheck?

[Jmart379]

I've had the same same issue for the entire 2021 year so far. I've tried to talk to IRS reps about why no federal taxes are being withheld from my paychecks and they keep telling me it is my employers responsibility. I am married, filing jointly with one dependent. My employer has no idea why they are not being taken out. There are other fellow employees at my workplace who are filing exactly the same as me and federal taxes are being withheld.

[DoninGA]

It is your employers responsibility to withhold taxes from your wages based on the W-4 you gave to your employer.  Only your employer or the employer's payroll department can tell why no taxes are being withheld.

You may want to give your employer a new W-4.

Go to this IRS website for the W-4 withholding estimator -https://www.irs.gov/individuals/tax-withholding-estimator

[Opus 17]

You may have submitted an incorrect W-4, or someone at your employer may have entered it into the computer incorrectly. You have to talk to your employer and maybe submit a new W-4.

It’s important to understand that the W-4 has four pages, not just the front page that you submit to your employer. The other three pages are instructions and worksheets for situations where you have more than one job or where you are married and your spouse also works. In the situation you have to follow the instructions and complete the worksheets or use an online tool to determine how to adjust your withholding correctly. If you have more than one job or if you are married and your spouse works and you do not make these adjustments, you will not have enough tax withheld.  When you do these worksheets or use the online tool, it will give you a recommendation and you will update your W-4s at all of you and your spouses jobs, not just the job you are thinking about. Your W-4s have to be coordinated and updated at the same time.

[TomD8]

At year's end, is your pay reported to you on a W-2, or on a 1099-NEC or 1099-MISC?

If you receive a W-2, and federal taxes are not withheld, your employer may be subject to both civil and criminal sanctions.  See this IRS reference:

https://www.irs.gov/compliance/criminal-investigation/employer-and-employee-responsibilities-employm...

[VolvoGirl]

You might want to send in an estimated payment so you don't owe too much on your tax return.  

Here are the blank Estimates and instructions…..

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

The 1040ES quarterly estimates are due April 15,  June 15, Sept 15 and Jan 18, 2022.  Your state will also have their own estimate forms.

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.....2021 Estimate

[cyates2021]

Late last year, I followed the W4 instructions, entered that both my spouse and I have jobs, that we have 2 dependent children, and arrived at $4,000 for dependents ($2,000 per dependent). After realizing my employer had not withheld any federal taxes all year, I inquired and they said that because my dependent amount is set to $4,000, no federal taxes have come out". Why would this happen? My spouse entered the same info. on her W4 and she had taxes withheld each pay period. 

[Opus 17]

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@cyates2021 wrote:

Late last year, I followed the W4 instructions, entered that both my spouse and I have jobs, that we have 2 dependent children, and arrived at $4,000 for dependents ($2,000 per dependent). After realizing my employer had not withheld any federal taxes all year, I inquired and they said that because my dependent amount is set to $4,000, no federal taxes have come out". Why would this happen? My spouse entered the same info. on her W4 and she had taxes withheld each pay period. 

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First, it might be correct to have no tax withheld, depending on your overall income.  We can't tell without more information.

Second, you should generally not file the same W-4 as your spouse.  You and your spouse need to follow all the W-4 instructions and worksheets for married with more than one job, not just the front page.

https://www.irs.gov/pub/irs-pdf/fw4.pdf

Generally, you only list your children on the job with highest income, look carefully at step 3 of the form, also make sure you either use the online calculator or check the box for "married with 2 jobs" in step 2.

You will want to prepare new W-4s for all your jobs, following the instructions or use the IRS online calculator.  You may owe tax for 2021 if you claimed the same two dependents on both W-4s. 

[AAWjetson]

Last year I was supposed to get 1800 back for my federal and I didn't, but got my state refund rather quickly. I haven't been able to get any response back on it, and can't really do anything, and it literally has my refund still in the system pending. This years taxes from my one job that is a corporation with held only 42 dollars for my federal taxes and almost 1000 dollars for my state taxes. I also had worked at a bar for majority of both years, and their numbers looked about right at least. I claim a 0 at both places, which means with hold more, not less. My taxes are extremely simple since I am single no children and have no investment gains worth claiming. I know how to do my taxes. My return for state is about the same, maybe a little higher and my federal this year is about as much as my state, so... Something is going on...

[TeresaM]

Since legislation eliminated personal exemptions, Form W-4 withholding sometimes needs to be adjusted further. You can give your employer a revised W-4 at any time. TurboTax has a W-4 calculator to help determine the best withholding for you, or the IRS has one available on their website. 

TurboTax W4 Calculator