On her W4, she selected married/2000 (1 dependent), but no federal income tax was withheld from her paycheck. Could this be correct?
If her income was below about $30,000, this could be correct. The tax system assumes that a married filing status means only one income, and if her income is under the standard deduction, no tax may be due. She should probably update her W4 to ‘single’ if you also work and have a similar income.
@Dakota
Her income was under $30,000 because she started the job halfway through the year after finishing her degree, but she filled out a new W4 at the start of the year and taxes still aren’t being withheld.
@Harlow
She needs to check the box for ‘multiple jobs’ on the W4 if filing as married. This will increase her withholding.
Zhen said:
@Harlow
She needs to check the box for ‘multiple jobs’ on the W4 if filing as married. This will increase her withholding.
Same issue for my wife, and this is the reason. She wasn’t checking the ‘multiple jobs’ box. State taxes were being withheld, but no federal. We did catch up with extra withholding.
@Harlow
Is she selecting single or married in section 1? Did she check the box for spouse also working in section 2?
Did she notice this at any point? It definitely sounds like you might owe something. If you can, try to estimate how much based on her income.
It could be right, depending on her income. A married couple with one child owes no tax if they earn less than about $50k.
Do you also work? How much do you both make?
Blake said:
Do you also work? How much do you both make?
Yes, I make around $50k and she makes $36k.
Blake said:
Do you also work? How much do you both make?
Yes, I make around $50k and she makes $36k.
Since you both work and have similar incomes, you should either both select ‘single/married filing separately’ or select ‘married filing jointly’ and check the ‘2 jobs’ box. Also, make sure you’re not both listing the same kids in step 3.
Why do you think it’s wrong? How much did she make after pretax deductions?
Did she make less than $50k? If so, that would be correct. If she failed to list your income on the W4, it assumes she’s the only income. If you’re married, filing jointly, with $84k total income and 2 dependents, your tax burden would be about $4000. Just ensure your total withholding is about $335/month to be on track.
@Dai
We noticed the issue when doing our taxes. Her W-2 showed no taxes withheld, but we didn’t owe any taxes. Should she keep her W4 the same since we didn’t owe anything? Next year, she’ll make a full salary, and together we will make about $84k with 2 dependents.
@Harlow
If she failed to enter your income, the withholding could have been correct, but if you both earn $84k and file jointly with 1 child, your tax burden should be about $4000. As long as your withholding totals around $335/month, you should be close to even by tax time.
She needed to check the box for ‘married’ and estimate your income. If she didn’t, it assumes she has no other income. We faced the same issue when my wife returned to work after a few years off.
This is Reddit. File for a divorce. Just kidding. She needs to file a correct W4. You still have time to fix it for 2025, but you’re out of luck for 2024.
Use the IRS Tax Withholding Estimator to get a better idea of your situation. You’ll need to wait until 1/31/25 for it to come back online, but it’s a useful tool. You can check your pay stubs and use this tool to adjust your withholding for the future.
One of the reasons I got divorced was the tax issues with my ex. Two years in a row, we didn’t get a tax return. One year, she didn’t pay a dime on student loans, and the next year, she claimed three dependents for some reason.
The same thing happened to me at my job. Federal income tax wasn’t withheld. I’ve been paying estimated taxes quarterly to avoid a surprise. I’d suggest your wife pay estimated taxes so she won’t owe later, or it won’t eat up your refund.