Submitted by averie_eve t3_ygjt6a in personalfinance
Bad_DNA t1_iu8zcw5 wrote
Reply to comment by averie_eve in Employer not withholding federal taxes... why? by averie_eve
Yes -- once you make above the taxable threshold, the system will withhold. Your prior employers may have calculated a bit differently due to your other filing statuses. Note: withholding and getting it all back in April is a BAD idea -- it means you gave the government an interest-free loan on that money where YOU could have been earning interest. Always try to zero out on the balance between sufficient withholding to pay the taxes you'll have to pay and not over-paying. Good for you for checking on it so you don't get clobbered with an unexpected tax bill in April. Here's the other side: Getting a refund isn't a good thing -- it means someone didn't do their math.
rnelsonee t1_iu94co1 wrote
>Yes -- once you make above the taxable threshold, the system will withhold.
OP seems to be asking once they make a certain amount in a year, will withholding start. The answer is no. Withholding is based on annualized income, so it depends on the paycheck amount × the number of pay periods. In other words, it's based on the pay rate, not the amount earned so far (otherwise, everyone would get tax free paychecks in January thanks to the standard deduction).
Like HoH with 3 kids means you need $75k to have tax liability. If OP makes say , $3,000 per biweekly paycheck (>$75k) they will have withholding from the first paycheck (as opposed to $0 withheld and then a big chunk on their last paycheck).
Bad_DNA t1_iuag5te wrote
Thanks -- yes. I like your wording - much more accurate. Mine was confusing.
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