federal taxes

[Hnslovesyou1]

My new employer of one month, I noticed federal taxes were not being removed. They said I was qualified to be exempt even though I selected non exempt. They are still denying to take out federal taxes. How do I go about this when I have always had federal taxes removed?

[Bsch4477]

You have to deal with this with your employer. TurboTax can’t help. Did they explain why they think you are tax exempt?

[VolvoGirl]

Are they taking out any taxes like Social Security and Medicare?  Did you fill out a W4 to tell them how much to take out like for Single or Married, etc?  Maybe they are paying you as a 1099 independent contract instead of a W2 employee?

[Hnslovesyou1]

Yes, I have contacted the person under HR and asked those questions, several times. They told me I am not contract/1099. Also reached out to whom did my taxes for their opinion, they said to contact IRS if HR isn't much help. I have always filed as HOH and claimed one and put non exempt.  Federal taxes have always been removed, this is the first time I've had this issue. Sadly that is why I have resorted here. It seems like no one knows what to do or heard of this situation. HR keeps telling me to put zero and then they will take out taxes. But I am a single mother so I have always put one as allowances. 

[Hnslovesyou1]

They are removed Medicare, SS and state taxes. But not federal. 

[Hnslovesyou1]

I have several times. I am at a lost cause, that's why I came here. HR says "I quality as tax exempt due to having a dependent". I have never heard of such. 

[VolvoGirl]

Maybe your paycheck is not big enough to have any federal withholding taken out because you have a dependent?   You can put down a set amount to be taken out for it.  On W4 step 4 line C, extra withholding.

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

[NCperson]

@Hnslovesyou1 - it's not that you are "tax-exempt" because you have a child.  It's that based on your income and the tax credit you are eligible for the child(s) and any EITC credit you are eligible for, you are a due a refund comes April 15.  The IRS tables that the employers are to use take that into account.  Since the math the employer is using indicates a refund in any event, the IRS instructs them NOT to withhold federal tax. 

if you want to "get into the weeds" of how your employer is supposed to be withholding federal taxes, look at the worksheet on page 9 of the link below . (it may be easier to follow on pages 11-12 as it will get to approx. the same result) 

https://www.irs.gov/pub/irs-pdf/p15t.pdf

[Hnslovesyou1]

The link you posted in your comments of the tax brackets were super helpful! I was able to get someone on the phone who previously did my taxes and calculated what they should be taking out according to the bracket. Also was told by state law that they are required to remove taxes. Although I feel better regarding the information given, I contacted HR/manager and told them everything I was told. They said to me ok we will just deduct from extra withholdings. I promptly asked why? I was told you have to remove taxes and the information given is misinformation, based on my pay I should have so and so removed from federal taxes, estimated. They told me no. We will just remove from extra withholdings. So now I am stuck and confused on why they are still denying. 

[NCperson]

@Hnslovesyou1 -

how much (approx) will you make in 2023?

how many children under the age of 17 do you have?

what is your filing status (HOH or married, I suspect). 

From that I can explain how much the withholdings should be 

[Hnslovesyou1]

32,100

2 

HOH

[NCperson]

@Hnslovesyou1 - there should be NO FEDERAL withholdings (assuming you completed the W-4 correcrtly).

$32,100 less the standard deduction of $20.800, leaves taxable income of $11,300. 

The tax on $11,300 is $1,130. 

From the $1130, subtact $1130 for the Child tax Credit means there is no tax liability.

But then you are elgibile for the Additional Child Tax Credit of $2870 and EITC of approx.$3600.

For State, there is probably rquired withholdings.  What State? 

So not only should you have no federal taxes withheld, if that is the case, then the refund next year shoudl be around $6500.

On the W-4, besure to check the "head of household box" in section 1C and enter $4000 in Step 3.  If you complete the W-4 that way, Payroll should not be withholding any FEDERAL tax. 

Lastly, anything ALREADY WITHHELD can not be returned by your employer as they have already sent that momey to the IRS.  You will just get it back when you file your tax return in early 2024.