Is the IRS intentionally this obtuse???

[ArmchairMillionaire23]

There is no such thing as claiming zero! The old zero, one, two language referred to exemptions. Congress did away with those in 2017 when they passed the Tax Cuts and Jobs Act. Nobody gets any exemptions nowadays, so they aren't even on the W-4 form any more.



Sounds like your employers either didn't enter the info from your W-4s into their payroll systems correctly or their systems are doing the math wrong. If you check the box for Married Filing Jointly in 1c and Multiple Jobs or Spouse Works in 2c, then the annual withholding from a job that pays $30K should be $1718, not $0. With the same settings on the W-4, the annual withholding from a job that pays $20K should be $615, not $0. So something is screwed up in the payroll process or you put something in the dependents or deductions sections of the W-4s.

Also, you are misunderstanding the tax brackets. Your marginal tax rate is 12%, but not all your income falls in that bracket. You will pay 10% of the first $22K and 12% of the remaining $300. So your actual tax would be ~$2236. (It comes from a table lookup, not a calculation, so it might be a couple dollars less or more.)

So, if you checked the two boxes mentioned above on each of your W-4s at the beginning of last year, and your employers transcribed them into their systems correctly, you would have had withholding of $1718 + $615 = $2333 and tax of $2236 and you would be due a refund of $97.

Here is from the 2024 IRS tax withholding schedule: (2023 is similar)

2024 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later
WEEKLY Payroll Period
Married Filing Jointly

If the Adjusted Wage_________Tentative Withholding Amount is:
Amount (line 1h) is:

At least:___________But less than:____Standard withholding:____Form W-4, Step 2, Checkbox withholding

$145__________$155_____________$0__________________$0
$155__________$165_____________$0__________________$0
$165__________$175_____________$0__________________$0
$175__________$185_____________$0__________________$0
$185__________$195_____________$0__________________$0
$195__________$205_____________$0__________________$0
$205__________$215_____________$0__________________$0
$215__________$225_____________$0__________________$0
$225__________$235_____________$0__________________$0
$235__________$245_____________$0__________________$0
$245__________$255_____________$0__________________$0
$255__________$265_____________$0__________________$0
$265__________$275_____________$0__________________$0
$275__________$285_____________$0__________________$0
$285__________$295_____________$0__________________$1
$295__________$305_____________$0__________________$2
$305__________$315_____________$0__________________$3
$315__________$325_____________$0__________________$4
$325__________$335_____________$0__________________$5
$335__________$345_____________$0__________________$6
$345__________$355_____________$0__________________$7
$355__________$365_____________$0__________________$8
$365__________$375_____________$0__________________$9
$375__________$385_____________$0__________________$10
$385__________$395_____________$0__________________$11
$395__________$405_____________$0__________________$12
$405__________$415_____________$0__________________$13
$415__________$425_____________$0__________________$14
$425__________$435_____________$0__________________$15
$435__________$445_____________$0__________________$16
$445__________$455_____________$0__________________$17
$455__________$465_____________$0__________________$18
$465__________$475_____________$0__________________$19
$475__________$485_____________$0__________________$20
$485__________$495_____________$0__________________$21
$495__________$505_____________$0__________________$22
$505__________$515_____________$0__________________$23
$515__________$525_____________$0__________________$24
$525__________$535_____________$0__________________$25
$535__________$545_____________$0__________________$27
$545__________$555_____________$0__________________$28
$555________$565____________$0________________$29
$565__________$575_____________$1__________________$30
$575__________$585_____________$2__________________$31
$585__________$595_____________$3__________________$33
$595__________$605_____________$4__________________$34
$605__________$615_____________$5__________________$35
$615__________$625_____________$6__________________$36
$625__________$635_____________$7__________________$37
$635__________$645_____________$8__________________$39
$645__________$655_____________$9__________________$40
$655__________$665_____________$10_________________$41
$665__________$675_____________$11_________________$42
$675__________$685_____________$12_________________$43
$685__________$695_____________$13_________________$45
$695__________$705_____________$14_________________$46

This is from: https://www.irs.gov/pub/irs-pdf/p15t.pdf

Here's my situation:
Gross Pay: $1160.
401(k) contribution: $587
Insurance deduction: $25.11
Net pay before taxes: $547.78
According to the IRS withholding chart, my federal tax is still zero. Whether we pay 10% or 12% that's still not enough being withheld. If I work overtime, I do get some federal tax withheld. (I'm up to $79 withheld so far this year)
I will double check on Monday to make sure that 1C and 2C are checked. It looks like I'll still have to have additional $$ withheld.

 

[cathy63]

Here is from the 2024 IRS tax withholding schedule: (2023 is similar)

2024 Wage Bracket Method Tables for Manual Payroll Systems with Forms W-4 From 2020 or Later
WEEKLY Payroll Period
Married Filing Jointly

If the Adjusted Wage_________Tentative Withholding Amount is:
Amount (line 1h) is:

At least:___________But less than:____Standard withholding:____Form W-4, Step 2, Checkbox withholding

...
$555________$565____________$0________________$29
...

This is from: https://www.irs.gov/pub/irs-pdf/p15t.pdf

Here's my situation:
Gross Pay: $1160.
401(k) contribution: $587
Insurance deduction: $25.11
Net pay before taxes: $547.78
According to the IRS withholding chart, my federal tax is still zero. Whether we pay 10% or 12% that's still not enough being withheld. If I work overtime, I do get some federal tax withheld. (I'm up to $79 withheld so far this year)
I will double check on Monday to make sure that 1C and 2C are checked. It looks like I'll still have to have additional $$ withheld.

No, the IRS withholding chart does not say your federal tax should be zero. Do you see that the last number on the line you bolded is $29? That's the correct weekly withholding amount for one person making $28K with a spouse who also works. If your employer is withholding $0, then something is wrong on the W-4 or in their payroll system. If they would withhold $29/week, that's $1508 per year. That sounds about right for 2024. Since standard deductions and tax brackets are both higher, you'll owe less tax than 2023 on the same amount of income.

 

[ArmchairMillionaire23]

Thanks. I will make sure the correct box is checked and I get the correct amount withheld.

 

[ransil]

I used the IRS w4 estimator to adjust withholding, with a rental and interest of about 35K last year I plugged in 20K in 4a and did the max of $84 for 4c , wifes first paycheck came in as zero they took out everything for taxes .

redid the w4 Friday and put in 10K in 4a will see what happens in a week or 2.

 

[AudiDudi]

I discovered about Sept one year that I would be subject to the penalty for under withholding. I just did a 401k withdrawal and had the entire amount sent to the FEDs and the State. The State also has a provision on their website that you can make an "extra" payment. I refuse to do quarterly installments.

 

[indiajust]

I started lying on my first job in high school. I used to put down 9 exemptions and pay at year end. if payroll balked i put down married, since it was easier to profess as an error.

i aim to be at the tolerance band bottom for underpayment.