Submitted by [deleted] t3_127k9cf in personalfinance
megarooski3 t1_jeehkif wrote
Reply to comment by Rave-Unicorn-Votive in Taxes - No deductions but still owing?? by [deleted]
It is 100% likely I'm messing up terminology.
Yes, I don't claim allowances. I do see on each paycheck that federal taxes ARE taken out of my commission, but I have never inputted to withhold more from them (if that makes sense). I have never designated a % to further withhold.
gooberfaced t1_jeelsel wrote
> It is 100% likely I'm messing up terminology.
Yes, you even confuse "return" and "refund"- the most basic of terms.
>I'm not withholding anything
That's your problem.
Go to https://www.irs.gov/individuals/tax-withholding-estimator and see how that plays out.
itsdan159 t1_jeenm1j wrote
>Yes, you even confuse "return" and "refund"- the most basic of terms.
And also among the most commonly misused so it's not like OP isn't in very large company.
penguinise t1_jeeq1iq wrote
You should check the withholding rate on your commissions. Chances are that it is exactly 22%.
If your other wages are at least $109,225 (2023, Married filing separately) then this rate is too low. You need to add additional withholding to the regular checks to make up for the shortfall. The IRS calculator may be able to help.
Based on the size of your shortfall, you also need to make sure that your filing status on W-4 is Single or Married filing separately, or if it is joint that you take an adjustment for the other job in the household.
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