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Bassam93
Returning Member

Getting taxed less and owing money to Federal

This year I have 4 W 2's, 1 from my old job (January to March) and the other 3 are from my current job, each W2 is for a location. I owe money to federal because I was taxed less than 10% on my payroll throughout the year. 
Found out on my ADP in 2021 that sometimes I get 2 bank statements for one payroll (bi-weekly pay). we assumed that happens when I work at two locations within two weeks. But, one of those split statements is less than half of the other one, about 10% of it. so it would be $200 or less, that means I'm getting taxed 8% or less. 
I don't claim any dependants and I never asked anyone to make changes to my W4.
Now I'm stuck in a loop where I don't know what's the reason. 

 

If anyone knows anything about this, please help. 

 

Thank you.

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1 Best answer

Accepted Solutions
AamilD
Expert Alumni

Getting taxed less and owing money to Federal

As you stated, that since less amount of tax is being withheld, you are now owing money for Federal Tax. The best approach for this would be to edit your Form W4 and increase the tax  withholding so that more amount is being withheld from each paycheck throughout the year, so that when you file taxes next year, you will not owe that much.

 

I have attached a section of Form W-4 and highlighted the relevant area. You can withhold extra from each paycheck by filling out that section through your payroll website and this way more taxes will be withheld from your paycheck but then you will owe less money or possibly get a refund when you file your taxes next year.

 

 

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2 Replies
AamilD
Expert Alumni

Getting taxed less and owing money to Federal

As you stated, that since less amount of tax is being withheld, you are now owing money for Federal Tax. The best approach for this would be to edit your Form W4 and increase the tax  withholding so that more amount is being withheld from each paycheck throughout the year, so that when you file taxes next year, you will not owe that much.

 

I have attached a section of Form W-4 and highlighted the relevant area. You can withhold extra from each paycheck by filling out that section through your payroll website and this way more taxes will be withheld from your paycheck but then you will owe less money or possibly get a refund when you file your taxes next year.

 

 

Bassam93
Returning Member

Getting taxed less and owing money to Federal

Okay then, thank you very much. so I can safely assume that if I wasn't facing the issue where one payroll statement was split into two and one being taxed less than 10%, then I wouldn't be facing this issue?
And yes, I'll go ahead and do that on my W4.

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