e-Filing Status

Forum|Forum|2 years ago
October 25, 2023
2 replies
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Hello there! Appreciate this opportunity so very much!

As of 5/16/23 I am no longer working because of health issues. My Son is now working and paying the rent and most of the bills. This will be the first year I won’t be filing as Head of Household with him as my dependent. I read recently that he could file with me as his dependent. Is that true? And would he file as HoH?

Also if someone—anyone—could explain how W4s work that would be most helpful. I started a job in 2021 and was introduced to the W4 and it was the first year I ever owed taxes. I was told it was because I didn’t withhold enough. But why can’t I just go with the standard deductions of the employer and not complete a W4? I don’t understand how W4s work and why aren’t they easier to understand and complete? There’s nothing on a form where you can just write a percentage that you’d like to have deducted from your pay. Seems deliberately confusing and misleading. Do I have to complete one on a job?

Thank you for your time!

Ask the Experts - Extension - Sept 2023

emina

Level 5

Hello, thanks for joining us today!

Regarding your son:

A parent may qualify as a dependent if their gross income doesn't exceed $4,700 (tax year 2023) and the support you provide exceeds their income by at least one dollar during the tax year.

• Social Security income generally doesn't count toward your parent’s gross income, but there are exceptions, such as when your parent has other income from interest or dividends.

You must have provided more than half of your parent's support during the tax year in order to claim them as a dependent. The amount of support you provided must also exceed your parent's income by at least one dollar.
If you paid for more than half the cost of maintaining a home as your parent's main home throughout the entire tax year and you are eligible to claim them as a dependent, then you may be able to file as head of household.

Reference links: https://turbotax.intuit.com/tax-tips/family/steps-to-claiming-an-elderly-parent-as-a-dependent/L34jePeT9
https://turbotax.intuit.com/tax-tips/family/guide-to-filing-taxes-as-head-of-household/L4Nx6DYu9

fulsomjohnsonAuthor

Level 2

Thank you so much for your response, Emina! I’ll go over this information with my Son.

emina

Level 5

When it comes to the w4 form, I understand it can be confusing. IRS says: Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Consider completing a new Form W-4 each year and when your personal or financial situation changes.

I am thinking that the reason you owed could be that there was no federal tax withheld based on your filing status, and your income was to high to qualify for certain credits as a HOH. Or your dependent's situation didn't allow for any credits that usually cover the tax due in these situations.

There actually is a section in w4 form that allow you to make additional deductions, called

Any supplemental withholding you want for each paycheck

Here is a detailed link that talks about w-4 and the withholdings.: https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-a-w-4-form/L2NapDzX2

fulsomjohnsonAuthor

Level 2

Thank you again for your help, Emina!

I called in recently to TutrboTax with still lingering questions about the W4. I was told by the young man who helped me that they didn’t really mean anything or change anything as far as the employer was concerned. All the W4 really did was make the employer aware that I was also withholding. In other words…and according to him…the W4 had absolutely nothing to do with the employer’s withholding. Which again is quite confusing because if that’s the case why does one need to be completed at all?
And why did this start?! Why are we suddenly required to complete W4s and must a person complete one? Is it legally required to do so? Just don’t understand why with everything so confusing in this world why add something else that now messes with my money?! The one thing a lot of folks look forward to each year is a tax refund. Now a W4 is robbing folks of that?! I can’t….

(My sincerest apologies. I realize I went on a bit but with everything I’ve read still I’m not understanding the point of this W4 and why it’s now necessary.)

emina

Level 5

I understand, no worries. So the employer is in charge of withholding and paying in the social security and Medicare part. That is a requirement and is employer's responsibility. When it comes to federal withholding, it is up to you to let your employer know, by using the form w-4, how much federal tax you want withheld from your paycheck. This is your responsibility. If you do not withhold enough, you will owe, if you take out too much, you will get this money back as a refund when you file your taxes.

If you fail to provide a w-4 to your employer, they are required to withhold your federal taxes at a single tax rate, which is the highest.

Some people, like myself 🙂 like to withhold a little extra, and that way I get a higher refund at the time of filing my tax return. Some people like to hold on to their money, and pay to the IRS when they file their return. The down side of this is that there may be penalty involved with this. Either way, you still end up paying the same federal tax amount based on your filing status, income and dependent's situation. w-4 form is just a tool to help you plan ahead.