I started a new job this year. I never noticed until now the current employer is only taking out FICA taxes not Federal Taxes. How screwed am I?

[mtre184902]

My payroll department says I do not make enough money to have federal taxes taken out.  I cannot afford to pay in next tax season.  What can I do?  Or do I even have to pay in next season?

[Opus 17]

That depends on your income, filing status, and how you filled out your W-4.  The easiest thing to do is use this IRS calculator. 

https://www.irs.gov/individuals/tax-withholding-estimator

For a single person with no dependents, the first $16,550 is covered by the standard deduction, so if your income is less than that (which is $318 per week), you would owe no income tax.  If you are planning to claim dependents, your tax-free threshold is about $36,000 per year.  If you are married and your spouse works, you have to use the W-4 calculator for both of you combined, and revised W-4s should be filed at the same time, so the withholding is coordinated. 

[mtre184902]

I will be filing single this year.  I have 3 kids that live with me. My youngest just graduated high school this spring.  None are in college at this time but none of them have jobs either.  My youngest is about to turn 19.  My oldest turned 20 this year. (twins)

[mtre184902]

At my current pace, I will make right about 30k this year.

[Opus 17]

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@mtre184902 wrote:

I will be filing single this year.  I have 3 kids that live with me. My youngest just graduated high school this spring.  None are in college at this time but none of them have jobs either.  My youngest is about to turn 19.  My oldest turned 20 this year. (twins)

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Over age 16, the tax credit calculation is different.  However, assuming you can use head of household status, and that your children qualify as "other dependents" for a $500 credit, we are still looking at around $36,900 before you stare to owe income tax.  

The best thing to do is use the calculator.  It's possible you filled out the W-4 wrong, or the company entered it wrong in their payroll system.   The calculator on the IRS web site will give you your estimated tax owed and recommend if you need to file a new W-4 if you need to catch up by the end of 2024.  (In that case, you would use the calculator again in January to reset the withholding for 2025.)

[NCperson]

The w-4 mimics the tax return

So if you have no tax liability (and based on your comments above, you don't), nothing would be withheld from the paycheck and you still get a refund in April 

the IRS withholding estimator will prove that to you 

[VolvoGirl]

Do you have any other income?  When did you stop the last job?  Any interest?  You can put down a set amount like $50 or 100 incase you have a tax on  your return so  you don't come up short or you will get a refund.    If you have a W2 from the last job this new job will increase your total income and might put you into a higher tax bracket this year.  

[NCperson]

@mtre184902 let's say your total income from all sources for the year is $30,000 and you have 3 dependents that you can claim on your taxes (and you can claim them as long as your provide over 50% of their support and they earn less than $5050 during 2024).  You would file HOH.

Income: $30,000

less Standard Deduction: $21,900

Taxable Income: $8,100

Tax Liability on $8100 = $813.

There is an "other dependent" tax credit which is the LOWER of of $500 per dependent or the tax liability. 

So in this case, the credit would be $813.  The result is no tax due and no refund. 

That is why payroll is not withholding anything.  Presumably you completed the W-4 indicating you are filing HOH and have 3 dependents (over the age of 16).  The W-4 mimics the tax return so there is no withholding required. 

Completing the IRS Withholding Estimator should get you to the same conclusion. 

make sense?