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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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Incorrect state on W-2 withholding

Working on TurboTax, and I notice that my W-2 shows my tax withholding for NC. I moved twice last year with the same employer as I move to work with their client. But seems my tax withholding didn't ...
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47 views

Alternative to IRS Online Transcript (for W2, Paystub)

I am trying to get IRS online transcript to obtain needed info for my W2 and paystub for most recent period (year). However, for me it doesn't seem possible to get that classical online transcript. ...
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88 views

Negative state tax withholding on W2

An employee had elected to reduce their CT State Tax withholding per pay period, however they did not have enough calculated state withholding based on their pay to reduce the elected amount. They ...
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0answers
41 views

How can I notify the CRA of intent to contribute to an RRSP?

I currently have an RRSP through work that I contribute to. However, the amount is significantly smaller than my annual limit. I have a self-managed RRSP separately and contribute sizable amounts. ...
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50 views

Employee’s Withholding Allowance Married

I'm filed with payroll as married with three allowances (I have no kids). I make $80,000/yr, and file as "Married filing jointly". Wife doesn't work. What is the optimal Employee’s Withholding ...
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Can I make estimated tax payments instead of withholding from my paycheck? [duplicate]

My employment provides me with a W-2 at the end of the year, and I currently have taxes withheld from my paychecks. In the opposite of this question, Pay estimated tax using W-4 withholding instead of ...
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1answer
42 views

Avoid tax withholding underpayment for RSU's issued

Background While filing taxes for 2018, I got fined for tax withholding underpayment. Nearly half my income was from restricted stock units (RSU). Many other co-workers who also received large ...
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3answers
60 views

Federal and State W4 forms

Is filing a state W4 form necessary if you already filed a federal W4 form? Do most employers require employees to manually fill out a state W4 form?
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2answers
124 views

Allowances for New York State W4 form

Why is it that you can't allow yourself as an allowance in the NY state form? In my case, I put the number of allowances as 1 in the federal W4 form and 0 in the NY state W4 form. Is this normal? Or ...
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2answers
134 views

Employer did not withhold taxes on last 3 pay periods (W2 employee)

I was a W2 employee at a startup. For the first several months of my employment my employer withheld taxes normally. Later, the company experienced financial problems and was unable to make payroll ...
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0answers
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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
42 views

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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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
618 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
91 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
48 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
940 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
593 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
37 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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344 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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3answers
2k views

Computer-readable IRS tax tables

I'm looking for downloadable tax rate tables in an import-friendly format (CSV, TXT, XLS, XLSX, XML, etc.). I've searched the IRS website but can't find anything besides the PDFs. Ideally, there ...
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1answer
194 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
249 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
5k 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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2answers
208 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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1answer
158 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
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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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1answer
256 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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72 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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0answers
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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
8k views

W-4 Allowances - IRS Calculator

I am currently utilizing the IRS Withholding Calculator to figure out what my allowances should be (note: NOT exemptions). My current situation: First half of year up to June 30, I earned 11,700. The ...
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1answer
51 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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2answers
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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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2k 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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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
189 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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3answers
11k 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
128 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
850 views

H1B first time filing W4, should I file as Resident Alien or Non Resident Alien?

Please tell me whether I must file W4 as Resident Alien or Non Resident Alien? I entered the US on H1B in early June with family. I need to file W4 for withholding taxes. By the end of this year I ...
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1answer
110 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
369 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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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
245 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
234 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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1answer
453 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
396 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
127 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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1answer
16k views

How does tax withholding work for capital gains of selling stock?

I am new in the United States, and before I moved here I did not deal with the concept of tax withholding and capital gains tax. I understand my employer withholds part of my salary to pay taxes, and ...
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2answers
827 views

Max allowances on w4, and not pay income tax till end of year?

Is there a reason that I can't do the max number of allowances on my w4, and pay no income tax during the year? I would then put the amount that you are normally supposed to withhold every pay check ...
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1answer
240 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 ...