Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
gabnalgus
New Member

If I claim zero allowances on both my W4s, how can I owe federal taxes?

 
6 Replies
SweetieJean
Level 15

If I claim zero allowances on both my W4s, how can I owe federal taxes?

Do you have income other than wages?
gabnalgus
New Member

If I claim zero allowances on both my W4s, how can I owe federal taxes?

No
gabnalgus
New Member

If I claim zero allowances on both my W4s, how can I owe federal taxes?

One income is a job I am currently working and the other is my monthly annuity.
gabnalgus
New Member

If I claim zero allowances on both my W4s, how can I owe federal taxes?

I had the same situation last year and received a refund.
SweetieJean
Level 15

If I claim zero allowances on both my W4s, how can I owe federal taxes?

Well, your credits such as (EIC) may have been different. Look at 2016 and 2017 side by side. Also check your data entry.
SweetieJean
Level 15

If I claim zero allowances on both my W4s, how can I owe federal taxes?

Your annuity is not a wage. 

But each withholding (say, 15%) is calculated as if is your only income.  When you add them together, you can end up in  higher tax bracket (say, 25%).

https://apps.irs.gov/app/withholdingcalculator/

https://www.irs.gov/pub/irs-pdf/fw4p.pdf

Dynamic AdsDynamic Ads
Privacy Settings
v