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Questions tagged [withholding]

related to the practise at times required by law to deduct money upfront before paying the balance. Generally used in the context to taxes.

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Withholding Tax for Citizen of No Tax Treaty with US

I am a citizen and resident of Saudi Arabia, a country with no tax treaty with the US. I receive monthly royalties from Amazon as a designer in their print on demand platform (they sell t shirts of my ...
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1answer
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What information from my 2018 and 2017 tax returns should I reference to complete my 2019 form W-4?

The 2019 Form W-4 worksheet and the IRS withholding calculator are asking questions about deductions and adjustments. I do not know these numbers from memory and I think I can get them from prior ...
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1answer
142 views

If my withholding will pay my and my spouse's tax bill, does she still need to pay estimated taxes as an independent contractor?

I am a full-time employee. My spouse is effectively employed long-term with one company, but has always been paid as an independent contractor. If I plan on filing my 2018 taxes jointly with my ...
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1answer
600 views

Income taxes for sign-on bonus

I just joined a new company, and I'm in the US. As my first paycheck, I got my sign-on bonus and regular bi-weekly salary both in the same paycheck, summed together. Does it make any difference in ...
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1answer
62 views

What is backup withholding tax?

I received an email notification today about a withdrawal from an investment account of mine that stated the following... Account Alert Fri Nov 16 00:13:59 2018 Backup Withholding Tax ...
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2answers
45 views

Payroll contributions vs. Extra withholding: which one takes precedence?

Suppose I choose to make pre-tax payroll contributions to my 401(k) and/or HSA, of an amount that takes up most of my paycheck. I also selected on my W-4 form to make an extra tax withholding per ...
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1answer
938 views

Is the return of an IRS withholding taxable?

I am expecting a large check (ca 70k) from the IRS for a withholding of a house we sold back in 2013 (I finally got the ok that I will get the withholding back). (We didn't live in the US anymore and ...
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1answer
383 views

On Form W-4, can you fill out line 6 instead of line 5?

I'm changing my benefits provider during the year and need to update my W-4 form and, for California, my DE 4. I'm changing my filing status from Single to Head of Household, so I've been having too ...
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1answer
34 views

I'm changing my tax status from Single to Head of Household during the year. How do I adjust my allowances?

I've been having taxes withheld so far as a Single, but I recently discovered that I'm qualified to file as Head of Household. Because I've been paying too much until now, I would like to reduce my ...
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227 views

On California's form DE 4, should one not leave line 1 (Worksheets A and B) blank when using Worksheet C?

I'm switching to a new benefits provider, Sequoia One, so I need to fill out my W-4 and DE 4 again. At my previous provider, I filed as Single, whereas I'd actually like to file as Head of Household ...
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1answer
187 views

Do you pay less US income tax if you withhold more?

I always assumed that the amount you withhold from a salary for federal income taxes does not change the amount you actually pay in taxes, but simply how much you get back or pay when you file your ...
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3answers
220 views

Why is tax withholding based on the current paycheck only and not cumulative?

This question points out the familiar but bizarre mechanism that tax withholding uses: every paycheck is extrapolated to the year, tax is computed on that amount, and tax is withheld for the fraction ...
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2answers
176 views

Is there a penalty to withholding more taxes at the end of the year?

Suppose that Bob realizes in November that he has severely underwithheld taxes and would have a large penalty due when he files. Since he works at a salary-paying job, he elects to increase his ...
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49 views

Claiming allowances

I just accepted an offer for a job with a $61,000 annual salary and a $7,500 quarterly bonus incentive. I am a single man with no children and I claimed 5 on my allowances. A friend of mine ...
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1answer
136 views

How to Answer IRS Withholding Calculator Questions About 2018?

I've been encouraged by my employer to recalculate my W4 allowances in light of the tax law changes for 2018. When I use the IRS's calculator it needs me to give answers for things like, Enter your ...
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1answer
57 views

RSUs and withheld taxes

A number of RSUs vested for me on the first of this year, but weren't released until mid-March due to an unreleased 10k. During this period, I switched jobs mid-February, and I was terminated at the ...
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Will backup withholding be applied in this scenario?

May be this is a very basic question but I couldn’t find exact scenario on web which I am looking for. What I know: If a US person (located or citizen of US) trades equity in market, then the broker ...
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1answer
49 views

Confusion with Spouse Allowances on W-4

I'm trying to minimize my tax withholding, but at the same time not to claim more than a correct number of exemptions. I got stuck with my wife's situation. She's a full-time PhD student and ...
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1answer
75 views

Calculate federal withholding based on number of dependents

How would you determine the exact federal withholding for a paycheck based on number of dependents in the United States? Is there a formula or a specific percentage of your gross based of number of ...
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2answers
81 views

Claiming '1' vs. Tax Refund Amounts

If I claim '1' on my W-4, that amount is equal to ~$4050.00, spread over the year, and I believe is counted toward taxable income, and is taxed on your paychecks. If I were to claim '0', is that same ...
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1answer
151 views

If you have many dependents, will using the Number of Allowances from a pre-2018 W-4 cause under-withholding in 2018?

In the pre-2018 W-4 Personal Allowance Worksheet, you get one allowance for each exemption, i.e. person on your tax return -- you get 1 for yourself, 1 for your spouse, 1 for each dependent. (This ...
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9answers
5k views

Does owing taxes or getting a tax refund imply my paycheck is off?

A thought crossed my mind recently and I was wondering if someone could explain if I'm missing something, and if so what. Simply put, as an individual filing taxes (single, no dependents), taking the ...
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1answer
201 views

Layman explanation of Withholding Allowance tax form

Hopefully this doesn't violate any rules, but I was hoping someone could explain this Withholding Allowance form to me in layman terms: https://dch.georgia.gov/sites/dch.georgia.gov/files/...
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3answers
6k views

Claiming different allowances on state and federal withholding?

I recently did my W4 and the number of allowances I had is 2, but on the state withholding form, since the options were kind of different, I had 0 allowances to claim. Do I have to stay consistent for ...
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1answer
106 views

Calculating Federal Tax from my paycheck - question about the formula used

I am trying to calculate the formula used to obtain my Federal Tax from my bi-weekly paycheck, so that I can anticipate future raises, and plan for my retirement accordingly. I was able to calculate ...
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2answers
357 views

Need advice on filling out w-4 form. Is it always good to withhold my income from taxes?

From what I understand, the more allowances I claim on w-4 form will allow me to keep more portion of my paycheck from being taken as taxes. So initially I thought I should always try to claim more ...
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1answer
122 views

CP542 backup withholding notice from IRS

I've just received an utterly bizarre letter from the IRS, excerpted below: Notice: CP542 Form: 1040 Tax Period Ending: 12-31-1985 Our records show you have reported and paid all tax ...
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1answer
218 views

Why are the percentage method and wage bracket methods not equivalent?

If you look at the IRS table, https://www.irs.gov/pub/irs-pdf/p15.pdf#page=42 , you can see the percentage method and wage bracket methods are not equivalent. For example, if I am a single person on ...
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1answer
232 views

Am I exempt from taxes if I work for a college?

I work at an accredited community college. I ask this because my paycheck, along with several other colleagues, had 0 withholdings for state, federal, and ssn. I was told that we get tax breaks ...
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3answers
2k views

How will my income tax vary throughout a year where my income fluctuated

I am in the USA: Will the income tax percentage change throughout the year if my (hourly) wage in the spring was low, then high in the summer, then in the middle of the start and end now in the fall? ...
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1answer
370 views

W-4 Changes: confused when filling out line 9 for additional withholdings

My wife and I got married late last year and we didn't change our W-4's to reflect that, only changed our marital status' through our companies. Both of our paychecks still state that we are single, ...
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1answer
121 views

Handling federal and state tax witholdings as a household employee

A friend has recently started a job as a nanny in Ohio and received their first paycheck. The employer family also provided a spreadsheet that records the gross pay, various withholdings, and net pay. ...
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2answers
645 views

How do I recover income tax withheld to wrong state (where my home state has no income tax)

I had been working as a contract to hire, working for Company A, employed by Company B. I was then directly hired by Company A, all within a tax year. Shortly after the transition, it was found that ...
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1answer
159 views

W-4 withholding options limited according to ADP

My employer recently switched to ADP for payroll and I want to select 'Married, but withhold at the higher single rate' for my W-4. That option isn't available on their ADP portal. And according to ...
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1answer
305 views

Several cents difference in the actual and calculated “Withholding Tax” values

I have decided to check/calculate my salary in a spreadsheet. All the numbers align correctly, except the federal Withholding Tax. I have tried to use the Schedule 15, and Schedule 15A (Tax year ...
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1answer
138 views

Where do I owe taxes if I am living in one state, but working in another?

Hello, I am about to start an internship in a neighboring state. Do I file for withholding in my home state or the state I am working in? I understand that I would be paying taxes to the working ...
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2answers
297 views

My first pay had taxes withheld. How to get the personal allowance for income tax?

I paid tax on my first paycheck in the UK. However, I am a resident and am from an EEA country, so the personal allowance should apply to me, but I paid 100 pounds of my 545 pound pay in tax. Is ...
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859 views

What happens if I intentionally throw out a paycheck?

Setting aside the fact that most rational people would never try this, I am genuinely curious what would happen if somebody did it. Say I am a full-time, salaried employee in the US. I'm paid twice a ...
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1answer
141 views

What is deducted from a social security monthly payment?

About to retire in ~8 months and live in California. I would like to know what taxes and deductions I should expect to see in my SS payment check; the SS office tells me I will receive ~2300, but how ...
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3answers
452 views

Mortgage company withholding insurance proceeds

We recently lost our home due to fire and smoke damages. Our insurance company has estimated the replacement cost to be $161,000.00. The mortgage company has released $40,000.00 (the maximum amount ...
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2answers
3k views

FICA was not withheld from my paycheck

Hello personal finance, I was filing my taxes for 2016 and I just found out that I transitioned from Non-Resident-Alien to Resident Alien around September last year by passing substantial presence ...
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1answer
56 views

How to handle a W-2 with an old address?

I telecommute and have a W-2 from a company in MD, with MD taxes withheld (box 15). The address on the W-2 is my old address in IL, but I now live in NM. I plan on filing taxes in NM and MD. Do I need ...
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2answers
7k views

What to claim on w-4 for a second job?

I am a single mom with 2 kids and work #1 job that pays 23,000 per year and I have just picked up a #2 job that will pay 21,000 per year. I don't want to owe taxes at the end of the year. What should ...
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376 views

FICA taxes withheld on F1 visa, employer said to give correct W2C moving withheld FICA to Federal? (Unique Case)

I was an intern at a company in 2016. I am currently on F1 visa (Non Resident Alien under 5 years) and therefore exempt fro SSN and Medicare taxes (FICA). My employer withheld these taxes and gave ...
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3answers
207 views

New employee - withholding

I'll try to keep it short, first a few facts. I moved to the US last summer, but didn't get my visa (intracompany transfere) sorted until before Christmas. This (January) has been the first month I've ...
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1k views

ESPP: Share vs Payroll withholding

I am considering enrolling in my company's ESPP program during the next offering period. The program is non-qualified, and my employer will withhold taxes on the difference between fair market value ...
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I claim one and my wife claimed zero on our W-4s, but we still owe…why?

I'm getting a head start on this year's income taxes for my wife and I. I have my W-2 already and I have her last paystub for the year. I claimed one exemption on my W-4, and according to her paystub,...
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3answers
5k views

401k and Payroll Deduction - $0 Take Home

I'm trying to dump as much money into my 401k as soon as possible. I have authorized 90% of my gross pay to go to my 401k. The company I work for is making that deduction correctly. My concern is the ...
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1k views

Where on 1040 do I indicate withholding adjustments in a community property state (form 8958)?

My wife received a notice from the IRS indicating they contest the amount specified on line 64 ("Federal income tax withheld from Forms W-2 and 1099") of her 1040. I'm trying to determine if we need ...
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2answers
2k views

My employer suddenly stopped withholding federal income tax from my paycheck. What should I do?

I started an internship in May and worked full time from then until mid-August. When I filled out the W-4 form I had used the IRS calculator to calculate allowances; the calculator recommended 6. The ...