Question
Why are no federal or state taxes being taken out of my pay checks? 10 points!!?
I am in college, and I have two part time jobs. At job one, I haven't had state or federal taxes taken out since January or February. I have been working there for about 5 years, and I have always had federal and state taxes taken out. I started working at job two in May of 2009. Federal and state taxes were only taken out for a few months. I filled out a new W-4 form at job two a couple weeks ago, claimed zero deductions, and asked for additional money to be withheld. At job 2, that is the only money being withheld. I still pay medicare and social security, just not federal and state taxes. According to my yearly income, I should be paying 15% in taxes. Is there some reason, that nothing but the amount I specified is being withheld from my checks? Thanks!
3 weeks ago - 3 answers
Best Answer
Chosen by Asker
Depends on how much you make at each of the jobs. The withholding for each job depends just on what you make on that job, do it might be that for each one of the jobs, you wouldn't owe any tax, especially since each is giving you credit for the $400 Making Work Pay credit even though you'll only get it once when you actually file. You did the right thing by specifying an amount to be withheld.
by Judy
3 weeks ago
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Other Answers
Noname: You are in the bracket that does not trigger with holding. See IRS Pub 15 and the with holding tables your employer uses to determine how much money to with hold. The tables are near the back of the publication and are based on your pay period. Bi-weekly twice a month monthly etc. This year the Making Work Pay program also reduced the with holding and that may add to the confusion. MWP is figured into the Pub 15 tables. The fact that you work two jobs also works against the with holding issue as each job with holds on the amount from that job only but if the two amounts were combined you might have with holding. Social Security and Medicare are with held for all of your income and this is normal. If necessary increase the additional with holding to cover any liability next Apr. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent
by hrblockerrolquinn- 3 weeks ago
for one thing, early in the year, Obama had the rate schedules reduced so people would have more in their checks to spend your state may have done the same thing, however, Calif. actually raised the schedules so all the efforts of Obama went to naught and, yes, your weekly(or however you are paid) py may have been at the minimum where no taxes are withheld unfortunately, no matter how well you plan for the year, the machinations of Obama will likely result in most taxpayers owing!
by tro- 3 weeks ago