When we filed our taxes this year I got the nasty surprise of a nice tax bill. I didn't realize that my company hadn't been withholding for federal taxes. When I called and asked about it, they told me that if my check is below $1024 then they do not pull federal withholding. I know, it was my fault for not looking at my pay stubs. I have been self employed for a long time and working for someone else has been an adjustment.
I have now adjusted and have set an additional withholding amount to satisfy the deficit (hopefully if the IRS calculator is correct) but it still seems wrong. When I called payroll and asked about it, they said they calculate that based on the post deduction amount but they are including post tax deductions. In my last check they only took the additional amount out but still no withholding other than that. When I do some simple math my gross pay minus my deductions (pre and post tax) are over $1024.
Can anyone please help me understand how this should be calculated? It sounds to me like this is incorrect and I'd like to get it resolved before I end up having to completely drain my savings yet again next year.
I think my federal withholding isn't being calculated correctly
byu/MrCableTek intax
Posted by MrCableTek
1 Comment
On your w4, what did you select for filing status?. Married, single or head of household? Did you check the box in section 2c? Did you add any dependants in section 3? Any deductions? What amount of extra withholding in section 4?
On your recent check, what was your taxable gross? How often are you paid? What was taken for federal income tax?