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AltReality OP t1_iyaoi9t wrote

Reply to comment by Mysunsai in Federal taxes are not being taken out of my paycheck... by AltReality

Maried filing jointly 2 children under 17 0 Other Dependents 0 Dependents 0 Other Income 0 Deductions 0 Extra Withholding

Is that what you are referring to or am I missing information?

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Its-a-write-off t1_iyap8qz wrote

You are utilizing the 4k of child tax credit to pay your federal income tax. So the whole point of the way you filled out your w4 is to factor in the child tax credit already. You seem to think that's a defect, it's not. It's the intent.

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AltReality OP t1_iyb4075 wrote

I was used to getting a fat refund at the start of the year. I know people say don't give the govt an interest free loan for the year...but I really liked getting $3-4K back...that was how I paid for vacations and stuff. Now I have to figure out another way to do it.

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Concerned-23 t1_iyb8yrj wrote

The refund was a free loan you gave the government. You’re getting the same money at the end of the year whether it’s a refund when you file taxes or if it’s just accurate tax withholdings during the year. Technically you have more money when you have accurate tax withholdings and no refund. Adjust your budget to have a vacation savings fund

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Its-a-write-off t1_iyb51la wrote

There is a line for that. On the w4, you can set an exact dollar amount of extra withholding. This is a per check amount. So if you are paid 24 times a year, to get a 4k refund put 166 extra withholding per check.

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wowsocool4u t1_iycjbm5 wrote

All that was doing was serving as a savings account. You were overwithholding (i.e. you got smaller paychecks) and then the government gave you the money back at the end of the year. Just start putting a few hundred dollars in a savings account each month.

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rnelsonee t1_iyapihr wrote

If you tell us your taxable income on your paycheck (sometimes "FIT taxable" or something) we can tell you how much you should have withheld. If you put your gross income in the IRS calculator and it said $400, it's very possible you have >$400 in deductions so your tax will be $0.

Well, let me just do this: for joint filers with 2 children under 17, a $62,700 income for 2022 results in $5 in tax. So if you make <$62,600/yr or so, your withholding should be $0. At $66,000/yr, federal tax liability is $401.

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Werewolfdad t1_iyaoxv6 wrote

Owing $400 is about perfect. What is your income?

Do you get paid the same every week?

Do you have health insurance or 401k contributions taken out?

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AltReality OP t1_iyap4qx wrote

$63,060 Salary

no 401k contributions but yes Health Insurance is taken out every check

and I get paid the same every check

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Werewolfdad t1_iyapl5p wrote

> Health Insurance is taken out every check

How much? And how often are you paid?

Any other pension or other pretax deductions?

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AltReality OP t1_iyaqh91 wrote

Medical 3 is $231

Medical Memo 3 is $549

I have no idea what the difference is.

No other pension or deductions.

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Werewolfdad t1_iyaszwh wrote

Yeah then per /u/rnelsonee ’s math, you have no tax liability (and may actually have a negative federal tax rate)

Zero withholding is appropriate

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rnelsonee t1_iyaqg2e wrote

Yeah, so with medical, it's going to go to $0.

The math if you had no pretax deductions:

You make $63,060. Subtract $25,900 for the standard deduction and your taxable income is $37,160. You pay 10% on the first $20,550 ($2,055), 12% on the rest, $16,610 ($1,993) for a total of $4,048. Subtract $4,000 to Child Tax Credits. Divide $48 by 52 to get $0.92 withheld per paycheck.

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