Viewing a single comment thread. View all comments

Werewolfdad t1_iyb2dwh wrote

>I make 55K a year, two kids, and a spouse that makes less than I do.

If your w4 was filed as married, they shouldn't have been withholding any federal income taxes based on this.

>I’m honestly pretty upset because my spouse knew this happened at the time and then tonight mentioned that we might have to pay interest/penalties on the taxes I didn’t have withheld!

Only if you owe more than $1000.

>but should I invest in having someone do them this time due to this issue?

Probably not, you may be freaking out over nothing

14

[deleted] OP t1_iyb3pyv wrote

[deleted]

1

Werewolfdad t1_iyb3uds wrote

> Can you explain why, if I filed as married, they wouldn’t withhold taxes?

Married w4 assumed you’re the only Earner and your income is too low to have any federal taxes due because of your children

https://reddit.com/r/personalfinance/comments/z8aorz/federal_taxes_are_not_being_taken_out_of_my/

Similar question form earlier

9

[deleted] OP t1_iyb6j21 wrote

[deleted]

2

Werewolfdad t1_iyb6s3w wrote

> but do they really assume that because I’m married, I’m the only one working?

Yes, that's what it means when you select married on the W4 and don't check the "two people are working" box or complete the two earners worksheet.

This is an incredibly common issue because most people fill out the W4 online rather than reading the actual document

11

[deleted] OP t1_iyb8qmu wrote

[deleted]

2

Werewolfdad t1_iyb9fbx wrote

> Was I getting back what I paid in?

Probably. That's usually what most of a tax refund is.

>I thought that if you make over something like 25K, married, that you’re required to pay income tax on it?

Yes, but your two children provide a $4000 tax credit, which means you'd need to earn about $62,000 (after 401k, health insurance, and other deductions) to have any tax liability.

>Seriously, thank you for taking the time to answer my questions!

Gladly

6

Its-a-write-off t1_iyb9cxu wrote

Yes, you were overpaying all year, and getting it refunded later. The EIC would have "paid" your taxes for you, so you didn't need tp withhold federal income tax.

The way to look at it is this: Tax liability, minus tax credits, remainder is all you need to withhold. So if your tax credits are greater than the liability, stop withholding. IT's just giving them your money, and waiting to get it given back.

2

Grevious47 t1_iybhe3t wrote

That is what the checkbox on the W4 for married means, it means younhave a household and are the sole earner of that household. If you are married and both of you have income you dont check married on your W4 or you fill out the dual earner section...that is in the instructions.

3

[deleted] OP t1_iybm7n0 wrote

[deleted]

1

Grevious47 t1_iybmuqa wrote

If you check you are married and your wife works you would check box 2C and then in the additional jobs section put her income.

If you dont do that but you do fill in sectiom 3 that you have dependants witholding would be calculated assuming your income alone covered your entire family.

Or, alternatively, if both your wife AND you filled out section 3 that could cause an issue. Lets say you had 2 children and you filled out section 3 that is $4k less on your combined taxes. If your wife also filled it out that would be a second 4k off which would mean you were claiming 8k off your taxes. If your total taxes were 7k then you would have zero witholding.

1