If I'm head of household with one child & yearly income is around $32,000, how should my W4 be filled out? They aren't taking out Federal and I don't want to owe IRS.

[amirangel96]

I currently have $2,500 for my claim dependents, but for some reason they aren't taking out Federal Taxes at my new job.  I want to have a tax return next year, not end up owing the IRS.

[fanfare]

@amirangel96 

Follow the instructions on the W-4 for a person claiming head of household  with one child.

Then add an additional amount withheld to make up for the missing withholding not taken out so far.

Otherwise you will owe on Tax Day.

[amirangel96]

Thank you so much.  How do I know how much additional, per pay period to withhold?  I'm not sure how to calculate that.

[Hal_Al]

People in your situation ($32K income, Head of Household,  dependent child under 17) do not pay any income tax and still get a refund through "refundable" credits (roughly $2000).  You do not not need to have any federal income tax withheld from your pay. 

[amirangel96]

Thank you for your help.  I have been so worried that I would end up owing next time.  And I definitely don't want that.

[NCperson · Accepted solution]

you really don't have to have withholdings for federal taxes 

With $32,000 of income less the standard deduction, the tax will be  around $1325.  That assumes you are filing Head of Household.

Then you will be eligble for the child tax credit which should be the same as the tax or $1325 (non-refundable credit) plus $600 for the refundable credit)

Then there is the EITC credit you will be eligible for which will be around $1600. (I assume you are under 65 years old)

Take all the numbers together and even if there is NO federal tax withheld, you'll still get a refund in the $2200 range comes next spring.  

No need to have your employer withhold taxes, unless you want a larger refund next year. 

[Critter-3]

If you want to force a larger refund simply change the filing status on the W-4 to SINGLE instead of HOH. 

[amirangel96]

Great detailed info.  Very helpful, thanks!! 

[fanfare]

@Critter-3 

that makes no sense since the Federal withholding is already zero.

[SweetieJean]

Remember your State taxes as well.

[Critter-3]

More taxes are withheld when claiming single filing status on the W-4 than the HOH filing status thus artificially forcing a larger refund on the return.  It is just a way to (a) insure/increase  a refund and (b) have some fed withholding both of which the OP was asking about.