Q) I’ve been on my job since 2018 started out making $11,000 plus dollars. I had no issue with my taxes. 2022 I get a statement saying I owe. Ok. All of my taxes were taken. Here it is again, 2023 I owe again. Come to find out no federal taxes were taken out of this year. I was asked to redo my W-4 which is the same as when i started in 2018, nothing has changed. Why didn’t they take out the federal if they had in the past?
A) There are a few possible reasons why your employer may not have withheld federal taxes from your paycheck.
You may have claimed to be exempt from withholding on your Form W-4. To be exempt from withholding, you must meet certain requirements, such as having no federal income tax liability in the previous year and expecting to have no federal income tax liability in the current year.
Your employer may have made a mistake. If you think this is the case, you should contact your employer’s payroll department to discuss the issue.
You may have changed your withholding status during the year. If you did this, you should contact your employer’s payroll department to update your W-4.
If you are not sure why your employer did not withhold federal taxes from your paycheck, you should contact your employer’s payroll department. They will be able to help you determine the reason and what you need to do to correct the situation.
In the meantime, you should make sure that you have enough money saved to pay your taxes. You can also contact the IRS to see if you qualify for any tax relief programs.
Other possibility is that there was an error in the payroll system, and your withholding was not properly set up to deduct federal taxes from your pay. Another possibility is that you claimed too many allowances on your W-4, resulting in insufficient tax withholding.
It is important to review your W-4 form and make sure it accurately reflects your current tax situation. If your income has increased or you have had other changes in your financial circumstances, you may need to adjust your withholding accordingly. You can use the IRS Tax Withholding Estimator to help determine how much tax should be withheld from your paycheck based on your current situation.
If you have already filed your tax return for the current year and owe taxes, you may need to set up a payment plan with the IRS to pay the amount owed over time. You can contact the IRS directly for assistance with setting up a payment plan or to discuss other options for resolving your tax debt.
It is also a good idea to speak with your employer’s payroll department to ensure that your federal taxes are being properly withheld going forward. They may be able to provide additional guidance or assistance in resolving any issues with your tax withholding.