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Werewolfdad t1_iyb6s3w wrote

Reply to comment by [deleted] in My employer wasn’t withholding any income tax from my paychecks by [deleted]

> 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

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[deleted] OP t1_iyb8qmu wrote

[deleted]

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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

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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.

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