Questions tagged [withholding]

related to the practice, at times required by law, of deducting money upfront before paying the balance. Generally used in the context of taxes.

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Working while collecting Social Security: How do they correct overage?

I expect to get Social Security benefits starting soon, but I plan to keep working. I know that if I make more than a certain threshold, SSA will deduct a certain amount from my monthly benefits. ...
Shawn V. Wilson's user avatar
0 votes
1 answer
92 views

Which loan would be most cost-effective to service first?

I'm currently the debtor of two loans: $620,000 CLP at 0.99% monthly interest, to be paid over 12 equal monthly instalments, starting this month. $180,000 CLP at 0% interest, but adjusted by ...
ppp's user avatar
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DC Resident but work for company in NJ and NJ State Tax Withheld

I live in Washington DC full time but work remotely for a company in New Jersey. I have NJ State Taxes withheld from my paycheck, not DC. I'm the only one who works in DC fulltime and my employer said ...
S. A.'s user avatar
  • 11
3 votes
1 answer
98 views

Can self-employed skip quarterly tax payement if compensated by spouse extra witholding?

Suppose a couple made a one employed spouse and one self-employed spouse. Further suppose that the couple choose to file jointly. Instead of having the self-employed spouse pay anticipated taxes of x$ ...
FZS's user avatar
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2 answers
193 views

Question about the specifics of the safe harbor rules for underpayment penalties

For the safe harbor rule for underpayment penalties, you don't have to pay a penalty if: You expect your withholding and tax credits to be less than the smaller of: a. 90% of the tax to be shown on ...
Andrew's user avatar
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Is my employer withholding too much?

I'm confused with the tax withholding on Federal Insurance Contributions Act (FICA) Medicare Hospital Insurance. It is supposed to be calculated as a fixed percentage (1.45%) of my gross income, with ...
bonhoffer's user avatar
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Do employers in CA submit the DE4 form to the state?

The DE 4 is used to compute the amount of taxes to be withheld from your wages, by your employer, to accurately reflect your state tax withholding obligation. My question is, do employers simply use ...
James Wierzba's user avatar
1 vote
1 answer
55 views

How to better balance state taxes when working in another state

I/we live in New York and my wife works in New Jersey. Whenever I file our taxes, the New Jersey non-resident return is pretty balanced. However, my New York return always has NY state owing us a ...
eman3gt's user avatar
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How to "Withold" Taxes for Single-Member LLC taxed as an S-Corp?

ZenBusiness suggested that I elect for my LLC to be taxed as an S-corp, but I see online that it requires me to "withhold" taxes on the salary I pay myself. This is a little confusing since ...
number41's user avatar
  • 153
3 votes
2 answers
269 views

My company, located in a different state, is not withholding local taxes for me

I am a resident of Maryland and I recently began working remotely for a company located in a different state. This company is not deducting local taxes from my paycheck. Will I incur a penalty for not ...
partyphysics's user avatar
1 vote
1 answer
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TSE:CHB and US withheld tax

"iShares U.S. High Yield Fixed Income Index ETF (CAD-Hedged)" (TSE:CHB) is listed on the TSX and tracks an index of US high-yield bonds. It holds these bonds directly (i.e. not through a US-...
Isaac's user avatar
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How to fill out California Allowances on the DE-4 form and Deduction on the W-4 form?

This is related to the question: In the US, how do we make tax withholding less if we lost our job for a few months? So the form that is similar to a Federal W-4 form is the California DE-4 form. For ...
Stefanie Gauss's user avatar
5 votes
2 answers
442 views

Should everyone who receives dividend income fill out a W-4 form reporting it to their employer?

My friend mentioned to me that he got dinged by the IRS for underpayment of estimated tax. Apparently the reason that his employer didn't withhold enough tax from his paycheck is that he received ...
Very Tiny Brain's user avatar
9 votes
1 answer
3k views

In the US, how do we make tax withholding less if we lost our job for a few months?

I was out of a job from March to June this year, so I expect to pay less tax and the tax bracket should be lower. However, when I joined a new company in July, and filled out the W4, I couldn't find ...
Stefanie Gauss's user avatar
1 vote
1 answer
130 views

What parts of W8Ben to my overseas artists need to fill out?

I run a small online gaming company (sole proprietor LLC) and I frequently commission artists from both the US (whom I issue 1099s to, and will start to collect W9s from), but ALSO contract some work ...
poster9182737's user avatar
2 votes
0 answers
27 views

Does the 2022 IRS Tax Withholding Estimator assume child tax prepayments?

I worked through the 2022 IRS Tax Withholding Estimator recently to make sure my withholdings were correct. To my surprise it said I would owe a lot of money. I usually try to make things such that I ...
mikeazo's user avatar
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How do I get my withholding correct when a significant amount of my income doesn't arrive until late December?

Almost half my taxable income last year arrived in late December, in the form of two things: 1) a large Christmas bonus (company politics mean I haven't had a real raise in a decade, but my bonus has ...
Mark's user avatar
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4 votes
2 answers
170 views

Correcting Social Security Administration's record of my income

I'm preparing for retirement and I created an account with the Social Security office. I checked my earnings record, and for four years in the late 80's, they show me earning $0. I was a graduate ...
B. Goddard's user avatar
14 votes
3 answers
8k views

Can someone withhold $0 in federal income tax?

Is a US citizen allowed to have no federal income tax withheld on their paycheck? Assume that the person has a moderate-income, full-time job, but their child tax credits equaled more than their taxes ...
nuggethead's user avatar
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1 answer
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Why the tax on stocks dividends differs between the types of companies?

Why some types of companies, like a limited partnership LP deduct more percentage on the dividends (for me it was 37%) than the regular percentage (30% for inc,lmt for example)?
huab's user avatar
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Must I pay NYC city tax?

I do not live in New York City I live in central New York and work in central New York. My employer has taken out NYC city taxes. Is this a tax I, not being a resident of NYC or any of the 5 boroughs ...
Chel's user avatar
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2 votes
1 answer
501 views

My 2021 withholding has already paid 100% of my 2020 tax liability. Can I skip paying estimated taxes on self-employment income for the rest of 2021?

My unique situation is as follows: My 2020 AGI was around $20k. My 2020 total tax (Form 1040 line 24) was only $700. My 2021 income will be much higher. I had a W-2 job from January through April of ...
form2210's user avatar
0 votes
2 answers
96 views

TurboTax behavior for married filing jointly with different income levels

I observe behavior whenever we file our taxes that I do not understand. It's not that I think TurboTax is making a mistake, I am just wondering why it behaves this way. Let's say these are our (made ...
Murenrb's user avatar
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1 vote
1 answer
808 views

Itemized and Standard Deductions on 4(b) of W4

I'm filling out a W4 and in 4(b) it asks for "an estimate of (my) 2020 itemized deductions (from Schedule A( Form 1040 or 1040-SR). Such deductions may include qualifying home mortgage interest, ...
dan178's user avatar
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13 votes
3 answers
3k views

How do you know how much to withold on your W-4?

My father says that if I need more money, I can withhold less on my W-4 (which won't result in the same oh here's $3,000 come tax return time), but will give us access to more money. So how do I know ...
leeand00's user avatar
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1 vote
2 answers
399 views

How to designate max Fed withholding in paycheck, with 2020 W4 (allowances no longer exist)

I want to have the maximum-possible US Federal Income Tax withholding made from my paycheck By "maximum", I mean I want ALL of the remainder (after all other deductions) of my paycheck ...
cellepo's user avatar
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1 vote
1 answer
92 views

Which NYS employee taxes are optional?

United States and NY state here. I'm looking at my paystub and under Employee Tax Witholdings I'm seeing the following line items taken out: Federal Income Tax Social Security Medicare NY State ...
hotmeatballsoup's user avatar
1 vote
1 answer
51 views

Figure out how much tax was withheld without form 1042-S

I haven't received form 1042-S for 2019 from a company that withheld tax on my behalf. They say they mailed it but I haven't got it and I haven't had much luck following up with them to send it again. ...
ottodidakt's user avatar
2 votes
1 answer
81 views

How can I get the government to withhold less money via the new W4 in 2020?

I have a bit of an issue I can't figure out. I am single, and my annualized salary would be about $140,000 as I make about $70 an hour. The issue is that I'm realistically only going to make about $...
Matthew Stopa's user avatar
4 votes
4 answers
2k views

Understand 401k contribution

I decided to add 5% in the 401k from this month and thought it will reduce my tax income but I don't see the much difference in Tax. Can someone help me understand that. My FITW Tax reduced from $459....
ejagkrch's user avatar
1 vote
1 answer
110 views

Necessary to file US Federal W4 in addition to state W4?

I already filed a state W4* with my employer - do I need to also additionally file a US Federal W4 with the same employer? Or does state W4 take into account for Federal W4 withholding amount also? ...
cellepo's user avatar
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3 votes
1 answer
85 views

Contributing to medical insurance

We are hiring a nanny and we would like to contribute to her medical insurance, as our understanding is it would be not be taxable (we are in California). Do we need to purchase the whole insurance or ...
gruszczy's user avatar
  • 215
8 votes
2 answers
6k views

How much do I withhold for an employee receiving $2000 every two weeks?

I might soon be employing a single person, paying them $2000 every two weeks. How much should I be withholding? Can someone share how to perform these calculations (so in case it changes I can adjust) ...
gruszczy's user avatar
  • 215
0 votes
2 answers
7k views

What does "Spouse Works" mean in W-4 form?

What's the definition of Term Spouse Works?
Ryan Lyu's user avatar
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2 votes
1 answer
366 views

Who pays the retroactive withholding tax - the withholding agent or me?

I am a non-US person and I have been receiving royalty payments from a US company since 2015. In 2020 the US company started to collect W-8BEN forms from its authors (like me) and apply a withholding ...
multigoodverse's user avatar
4 votes
1 answer
275 views

I work remotely for a company in another state. Both states are witholding taxes from my paycheck. Is this right?

I live in Pennsylvania. I work full time 100% remotely for a company that is located in Connecticut. On my first paycheck I was surprised to find that I was having state income tax withheld by both ...
Milton McDonald's user avatar
0 votes
1 answer
255 views

Why does New Mexico (apparently) require withholding more income than is required to cover state income tax?

New Mexico has four tax brackets, which for married filing jointly breaks down as (at least in 2019): 1.7% for $0-$8000, 3.2% for $8001-$1600, 4.7% for $1601-2401, and 4.9% for $2401 and above. I'm ...
NeutronStar's user avatar
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1 vote
0 answers
108 views

Why is NYS supplemental rate so high?

For 2019 the NYS suplemental withholding rate was 9.62%. However the maximum tax bracket in NYS is 8.82% for 2019. This means that even for the highest earners the withholding will be too much and ...
innominate227's user avatar
10 votes
1 answer
2k views

What has happened to the W4 form for 2020 - paying a lot LESS federal taxes?

I made a mistake on my 2019 W4 form by claiming way too many dependents (10). I don't know how I ended up with this number but it was seriously wrong since I only have 3 dependents. At the time, ...
JonH's user avatar
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1 vote
1 answer
618 views

Isn't my W-2 federal income tax withheld too low?

My wife and I file our income taxes as "Married Filing Jointly". There seems to be a drastic difference on our W-2 forms. She has been at her job for 15 years and her W-2 has changed very gradually ...
CSSBurner's user avatar
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0 votes
1 answer
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Do non-resident developers earning through In App Purchases and having their total tax liablity withheld,required to file the form "1040-NR"?

In this link https://www.irs.gov/individuals/international-taxpayers/taxation-of-nonresident-aliens I find it is written only those whose income tax is not satisfied by withholding are required to ...
rightlifesavecompenthusiast's user avatar
-1 votes
1 answer
75 views

Need to file Income Tax Return

If my total tax is remitted as withholding tax should I still file income tax return?
rightlifesavecompenthusiast's user avatar
0 votes
1 answer
124 views

How to get a uniform amount of money for each paycheck given the social security threshold?

Near the end of last year, my paycheck stopped including Social Security Tax, causing my net pay to increase. I just learned that there is an annual threshold for contributions to FICA/SS This caused ...
JacobIRR's user avatar
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3 votes
4 answers
301 views

How to get a refund from the IRS if taxes were over-withheld?

Here is my timeline: I did not work in 2019 until Sept 23; Sept 23, 2019 start a job with 36% of every paycheck withheld for tax; Jan 10, 2020 got laid off; Jan 15, 2020 got a partial paycheck ...
Derek Fulton's user avatar
0 votes
1 answer
84 views

New York State withholding penalty

If I get a penalty from New York State, can I pay it and the withholding all at once? For example, my withholding tax in NYS is $1k, and my penalty is also $1k. Can I can pay all $2k at the same ...
ein odmilvado's user avatar
5 votes
3 answers
321 views

When do we have to pay the tax for 401K withdrawals?

I am planning to withdraw money from my 401K to use it for down payment on a house. The question is, when do I have to pay the tax? If I withdraw it in 2020 after I file my tax return, would I pay the ...
fhcat's user avatar
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0 votes
1 answer
274 views

Salary increased 25% and tax withholdings increased 300%? Help with my W4

I've filled out the W4 five times now and keep getting a high number. At my old job, about $344 was withheld in my biweekly paychecks and my new job is withholding 4 times as much. My new salary: ...
ximapi's user avatar
  • 1
1 vote
3 answers
184 views

Additional withholding

I have claimed 9 federal withholdings for the entire year and just switched back to claiming 0 August 1st as I should have done from the beginning of the year. I do not want to owe taxes so I have ...
KTK's user avatar
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2 votes
1 answer
673 views

Does my tax bracket change per pay period? [duplicate]

I'm in tax bracket A. My employer takes out the appropriate taxes reach pay for my tax bracket. During a special pay period, my pay is much higher than normal. If my pay was ALWAYS what it is in ...
Ethan The Brave's user avatar
0 votes
3 answers
155 views

Do under-withholding penalties apply to supplemental income?

I understand that while supplemental income is ultimately taxed the same as other kinds of income, it's withheld at a flat rate of 22%. If this causes a significant under-withholding, is the employee ...
user2752467's user avatar