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Its-a-write-off t1_j6oz6ui wrote

Reply to comment by countymanTX in Job not with holding enough federal tax. by [deleted]

Then your employer is doing what you asked. You have a very minimal federal tax liability, so you don't need significant withholding.

The only thing withholding would do is pad your federal refund. Instead, just set up an auto deposit into a savings account.

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countymanTX t1_j6ozson wrote

But based on federal income tax table they should be withholding about $6,000 in federal tax.

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nolesrule t1_j6p0j92 wrote

Your Federal taxable wages would need to be around $98,000 after pre-tax deductions to have $6000 in tax liability with 1 kid. Not sure how you got the numbers you did.

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countymanTX t1_j6p3f3p wrote

With the marginal tax rate chart.

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stoplightarrival t1_j6p4s5x wrote

I suspect the chart you're looking at is based on taxable income, so you'd need to deduct off your standard deduction before using the table. Also, it's not taking into account the child, which wipes away your tax liability.

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nolesrule t1_j6p4zb9 wrote

You need to factor in the standard deduction of $27700, the fact that tax rates are progressive so the remainder of your taxable income is all in the 10% bracket and the CTC reduces your final taxes by $2000.

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Its-a-write-off t1_j6ozyc2 wrote

No, where did you get that impression from? Are you looking at publication 15t?

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countymanTX t1_j6p3lvl wrote

No I was going off the marginal tax rate.

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Its-a-write-off t1_j6p3v2x wrote

That would be incorrect then. What they are withholding is correct.

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[deleted] OP t1_j6p5du6 wrote

[deleted]

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Its-a-write-off t1_j6p975k wrote

No. Move the child tax credit to the end. After finding your tax, then deduct 2000 from the final tax calculation.

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