Taxes being withheld

[Anonymous]

I file head of household and I have 2 dependants. I know I filled out my W4 correctly. Why isn't my job taking state and federal taxes out? Does that mean I will have to pay come tax time? How can I change it to where taxes are being taken out?

[James-B]

Hi @Anonymous

Most likely when you completed the W-4, the IRS tables estimated that your withholding should be zero since you will most likely pay little if any tax on your total income at the end of the year. 

There are two parts to this question that need consideration.  The first question is did you owe any taxes last year on your income?  You can determine if you owed taxes by looking at your total tax on Line 24 of your Form 1040.  This will give you an idea of the amount of taxes you owed prior to additional credits.  If that number is zero, then you didn’t owe tax and your current W-4 is probably fine. 

If you did owe tax, the second question is how do you update the W-4 form?  One potential update is to reduce the amount on step 3 set aside for your dependents.  If you followed the instructions and placed $4,000 in that location, then you could reduce the amount to $2000 or $0.  Another option is to request additional withholding by placing an amount in 4(c) of the form.  This will increase the federal withholding from your paycheck per pay period.

I recommend using the TurboTax W-4 tool to get the best results.  I’ve added a link below for your reference and use.

W-4 Calculator - Free IRS W-4 Withholding Calculator 2021-2022 | TurboTax® Official (intuit.com)

Of course, if you have any questions, you can always call or chat with TurboTax to help.  W-4 forms are an art and sometimes it takes a few tries to get it just right 🙂 

Good luck and have a great day!

[carolineb · Accepted solution]

Hello! By filling out your W-4 to reflect head of household filing status with two dependents, you have chosen to have less taxes withheld from your pay than a single person with no dependents.  This may result in no taxes being withheld if you are only working part time and the amounts on your paychecks are low. Because you have two dependents, you may qualify for the Child Tax Credit and/or the Earned Income Credit, which are both refundable credits and sometimes result in a refund even if no taxes were withheld. However, if you wish to ensure that federal and state taxes are being withheld, change your W-4 to reflect yourself as Single, and do not fill out the section on dependents. This way, even if you are only working part time, you should have enough withheld to cover your income. You can do the same on your state W-4, if you like. Hope this helps! 

[Anonymous]

Yes I work part time and I did not know on the W4 I could mark as Single with no dependents eventhough I file head of household with 2 dependents on my taxes 

[VolvoGirl]

Yes.    What you claim at work on the W4 doesn't have to match your actual tax return filing status.  It's just to tell your employer how much to take out.  You will get credit for all the withholding on your tax return.   I'm married but claimed Single on the W4 to have more taxes taken out.  

[Anonymous]

If I change W4 to reflect single no dependants, taxes will be taken out. So when I file taxes (head of household 2 dependants), the taxes I paid thru the year by changing W4 I will get back, correct? Or get back the overage amount I paid? 

[VolvoGirl]

You get credit for the total withholding taken out.  Doesn't matter what you claim on the W4.  Then if the withholding and any credits (like the EIC and Child Tax Credit) are more than the tax due on your return you get the overage back.  Some credits are refundable meaning you can get them even if you don't owe any tax.

[Anonymous]

Ok! Thank you so much!