My wife started a new job in March 2020, she put filled out her W4, as 1 dependent and her self, $2500 deduction. They only took out $35 federal for the year? Why?

[HelenC12]

Based on the payroll tax tables, what she filled out on the W-4 and the amount of income she earned, the $35 federal income tax withholding was probably the right amount. 

When you complete your income tax return and you don't owe federal income taxes, then your W-4 withholding is correct based on your filing status, number of dependents and the tax breaks you are getting. 

If you owe, than one of you may want to adjust your W-4 to add an additional withholding amount or claim single with zero dependents. 

• IRS Form W-4 is completed and submitted to your employer, so they know how much tax to withhold from your pay.
• Your W-4 can either increase or decrease your take home pay.
• If you want a bigger refund or smaller balance due at tax time, you’ll have more money withheld and see less take home pay in your paycheck.
• If you want a bigger paycheck, you’ll have less withheld and have a smaller refund or larger balance due at tax time.

[jorswift1]

Thanks for the reply.  She made $15/hr, worked 40 hour weeks.  They only took $35 for the year out in federal taxes.  That does not seem right to me.  Seems like not enough. 

[RayW7]

Yes, if you owed a balance upon the completion of your 2020 tax filing and the employer only withheld $35.00 for the entire year this probably needs to be adjusted.

She can contact the HR department and make an adjustment on her W4.

See the following link for a withholding calculator-

W-4 Withholding Calculator - Free IRS W-4 ... - TurboTax