Federal tax withheld 0.00 state of Texas

[Katsan90]

I have 3 dependents and I only put two of them to claim that is like 4,000 I believe is the amount they tell you to put for 2 dependents. My question is my federal tax withheld is at 0.00 and it’s been like that for a year. How will that affect my tax return 

[RSUMan]

Your employer is withholding zero Federal income taxes because employer believes your Taxable Income on your Federal tax return will be zero.

Your dependents create credits which are like a check that pay your taxes.

If you have dependents, you may be filing Head of Household which gives you a Standard deduction of $19,400 in 2022.

So your Box 1 Wages on your W-2 will be reduced by $19,400 and your employer sees another $4,000 of dependent credits which will be used to reduce your tax liability; in other words, employer does not believe you will owe Federal income tax so employer is withholding zero Federal income tax from your paychecks.

[SuziM]

Thanks for your participation in our Ask the Expert event regarding "How does the Child Tax Credit and Dependent Care Credit impact this year's tax return for you?"! We’d love to get your input on the event and your TurboTax experience: Click here to leave a video testimonial.