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posted Oct 26, 2022 9:50:09 AM

Federal tax withheld 0.00 state of Texas

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 

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2 Replies
Employee Tax Expert
Oct 26, 2022 10:02:17 AM

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.

Moderator
Oct 27, 2022 2:21:09 PM