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Its-a-write-off t1_iyb28mm wrote

Did you put married, 2 dependant tax credits on the w4? Because that setting, at your income, tells your employer to withhold 0 federal income tax.

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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

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Its-a-write-off t1_iyb2dwj wrote

There is no reason to hire your taxes out based on this, no. It's not that kind of big deal.

What setting does your spouse have on their w4? How much do they make a year?

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Werewolfdad t1_iyb6s3w wrote

Replying to [deleted] (#788,558)

> 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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Its-a-write-off t1_iyb9cxu wrote

Replying to [deleted] (#789,192)

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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Werewolfdad t1_iyb9fbx wrote

Replying to [deleted] (#789,192)

> 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_iyb9qz0 wrote

Replying to [deleted] (#788,057)

So with you making 55k, and your spouse making 20k, and we'll assume at least 3600 in pre tax deductions (do you have pre tax retirement, fsa, hsa, health insurance?) your tax liability after the child tax credits pay the bulk of it, is 1100 or so. So check what your spouse has had withheld to date, and subtract that from 1100, and that's about what you can expect to owe.

Do you have the children in any paid daycare while you both work? That's another credit that could wipe away even that 1100.

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Urban_FinnAm t1_iybbxwx wrote

This is good to hear since I am in a similar bind. Thanks to everyone for your input.

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Grevious47 t1_iybhe3t wrote

Replying to [deleted] (#788,558)

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.

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visitor987 t1_iybj95q wrote

Yes get a CPA and make sure a lot is withheld for your December paychecks. You need to find one now in January thru April most do not take new clients.

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Grevious47 t1_iybmuqa wrote

Replying to [deleted] (#793,109)

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.

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