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Flower2200
Returning Member

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11 Replies
Critter-3
Level 15

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This has everything to do with how you filled out the W-4 form that you gave to your employer and based on that information the withholding was done by the employer.   It is possible that zero withholding is correct for your situation.   

 

For instance ... if you made $250 per pay period and you have 52 pay periods per year your annual salary would be only $13000 and the single filing status standard deduction would be at least that much so you would have NO income tax liability thus no withholding would be needed.  

 

If you made $300 x 52 weeks =$15600 and if you are single over the age of 24 under the age of 55 then you would not only get the standard deduction  but also be eligible for the Earned Income Credit which would again bring you to a zero tax liability.  And if you have kids under the age of 17 then the EIC would be even larger + the Child Tax Credit would make things happy on your return.

 

Now if you are married without kids then you really need to check the Single box on the W-4 and/or maybe add an additional amount to line 4c of the W-4 ... follow the form instructions if you are married or have more than one job.

Flower2200
Returning Member

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Flower2200
Returning Member

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Flower2200
Returning Member

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xmasbaby0
Level 15

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@Flower2200 You are not exempt from paying income tax.   The amount of federal tax being withheld from your pay has been affected by the W-4 you gave your employer.   If you want to change the amount they are withholding you can prepare a different W-4.  And.....talk to the employer.    When tax time rolls around, you will be adding all of the income you earned to your joint return.   If you have not had enough withheld from your wages then your refund/tax due will be affected by this.

 

https://www.irs.gov/pub/irs-pdf/fw4.pdf

 

 

https://www.irs.gov/individuals/tax-withholding-estimator

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Critter-3
Level 15

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The withholding is correct if you entered married and one child on the W-4.  Your main issue is if your spouse also works and also claimed the child on the W-4 with married ... then you could be underwithheld.  In that case the person with the lower wage should fill in a new W-4 and choose the SINGLE option and do NOT enter the child   OR  try to fill in the impossible  4 page W-4 worksheet to come to the same conclusion. 

Flower2200
Returning Member

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Critter-3
Level 15

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Ok ... then between your withholding and his estimated payments you just need to have enough withheld or paid to cover your tax liability after all credits and payments have been accounted for ... so I suggest you click the SINGLE box on the W-4 and remove the child and then see if that will be enough withheld.  Then if you need more either increase the estimated payments or add a static amount to line 4c. 

Flower2200
Returning Member

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Critter-3
Level 15

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This is now a discussion to have with the employer ... they may have changed their system from the old withholding to the new withholding which is reflected on the new W-4 form they may or may not have had you fill in.    

 

https://www.irs.gov/forms-pubs/about-form-w-4

 

https://www.irs.gov/individuals/tax-withholding-estimator

 

 

SteamTrain
Level 15

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It almost sounds as if the employer/payroll dept., is waiting until your pay exceeds the federal Standard Deduction level (for whatever status you indicated on the W-4), before they started withholding.

 

Thus, starting a job in the middle of 2021, and 1600-2000/mo pay...that might not happen until later in the year.

Then starting all over at the start of 2022.

 

Yeah...seems a strange way to do it...never ever heard that it would be allowed to be done this way.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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