Can my job not take out my full federal withholdings is that legal?

[acollins1007]

If I only made 20,348. How come my federal return is only 72 dollars?

[VolvoGirl]

You are getting a $72 refund?  That's good.   You don't want to owe more or let the IRS hold your money all  year without paying you interest.  You should always try to end up even on your tax return.  Not owing or getting too big of a refund.   But if you want a bigger refund you can  have your employer take out MORE withholding by giving him a new W-4.  

[JohnB5677 · Accepted solution]

Your company must withhold Social Security and Medicare taxes. You must pay income tax based on a tax table and information you give to your employer.

• The Standard Deduction is $15,750.
• If you earned $20,348, you had a taxable income of $4,598.
• $72 would be enough to cover ‌Federal taxes on that amount.

If you worked more than one job, or your spouse works, you will receive W-2s from multiple employers. If you have multiple sources of income, you must combine all of the income to determine your tax. 

• The first $15,750 (the Standard Deduction if filing Single) isn't taxable. That is the way the payroll system works. They estimate your income for the year and calculate the tax with that deduction included. 
• However, if you had a second job, and failed to tell your employer the amount you earned, or expected to earn in the first job, the payroll system would give you the same deduction a second time. 
• This would most likely result in you owing additional tax on your tax return. 
• This situation is true for all other forms of income you may earn. 
• To avoid this circumstance, you should provide your employer with a 
• Form W-4.

For more information, see, 

Your withholding may not be enough to cover other income

[acollins1007]

Thanks.  My refund was only 74 dollars