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gerthums
New Member

Why is my employer not withholding taxes 2021?

I have been advised by my HR to go to IRS.gov and look up child tax credit.  This does not explain why they are not withholding my federal taxes.
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3 Replies

Why is my employer not withholding taxes 2021?

withholding is figured on your wages less credits. so if on the w-4 you claimed dependents in step 3 (the child tax credit) this could generate enough credits so no withholding is required. 

Hal_Al
Level 15

Why is my employer not withholding taxes 2021?

The 2021 child tax credit is humongous, a 50 or 80% increase, depending on the age of the child.  Yours is a common situation this year.

Why is my employer not withholding taxes 2021?

If this is not to you liking then simply change the W-4 ... reduce or eliminate the number of qualifying dependents you are claiming.  OR  when you can OPT OUT of the CTC advances they will start paying in July if you still want a large refund on your return.  https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

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