Here’s the situation: When I had 2 kids, I was still paying federal taxes. After our third child, I noticed that my paystubs and HR confirmed I no longer have federal taxes taken out because of the dependents I listed on my W-4.
I’m worried that when tax season comes, I’ll owe a lot of money or maybe not get a refund. Can someone explain what this means for me?
Are you married or single? Also, how much do you earn annually?
Riley said:
Are you married or single? Also, how much do you earn annually?
I’m married.
In 2024, I had some merit raises, starting at $55k and ending the year at around $56,530. At the start of this year, I got another raise to $61k.
@Cale
If you’re married with 3 kids under 17 and a total income under $80k (all from W-2 jobs), it makes sense that you’re not having federal income taxes withheld. Assuming your spouse doesn’t work, everything seems correct.
@Riley
So when I file my taxes next month, will I end up owing a lot, getting a big refund, or will it not make much difference?
Cale said:
@Riley
So when I file my taxes next month, will I end up owing a lot, getting a big refund, or will it not make much difference?
It sounds like your withholding is accurate, so you probably won’t owe much or get a large refund. Everything should balance out fairly closely.
Cale said:
@Riley
So when I file my taxes next month, will I end up owing a lot, getting a big refund, or will it not make much difference?
To figure that out, take a look at Line 24 of last year’s tax return. That’s your total tax owed for the year. That’s what you should have paid through withholding.
If you didn’t withhold enough, check Line 37—that’s the amount you owed after filing. Some people confuse this with how much they’re supposed to pay overall.
If you’re claiming “exempt” (a specific tax term), it means nothing is withheld, and you won’t owe or get a refund.
With that in mind, what do you think the answer to your question about owing or receiving is?