federal income tax witheld

[rundongzheng]

I worked in the restaurant and I received the paystubs. But when I look at my paystub, there is no federal income tax withheld?  I wanna know know why. Because I work in another restaurant, there is federal income tax withheld.

[MindyB]

The likely reason one restaurant is withholding federal tax while the other is not likely comes down to the "One Big Beautiful Bill" passed in July 2025, which introduced a federal income tax deduction for up to $25,000 in tips. Your employers have likely handled this transition differently: one restaurant may have updated its payroll system or your Form W-4 to stop withholding tax in response to this new $25,000 deduction, while the other may still be withholding "the old way" to let you claim the deduction as a refund when you file. 

If you would like federal tax withheld, you can update your W-4 with your employer to request a certain amount withheld per pay.

[rundongzheng]

I check the W-2 for 2024 tax return when I worked in the restaurant, there is no federal income tax withheld.

[MindyB]

If you also checked the 2024 W-2 and it is zero as well, it is likely that you did not make enough money to necessitate withholding or your W-4 needs to be updated.

Fill out an updated W-4 to increase withholding if you would like it to be withheld. The IRS offers a withholding calculator, here: Tax Withholding Estimator.

You can use the tool to help estimate how to revise your W-4 (what your payroll department or payroll service uses to withhold tax from your paycheck).