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averie_eve OP t1_iu98run wrote

Reply to comment by Its-a-write-off in Employer not withholding federal taxes... why? by averie_eve

I tried the IRS W4 withholding calculator because I thought I must have done something wrong on my W4. Followed the instructions exactly, inputting each thing as accurately as possible, and it ended up telling me I'll get a $7,000ish refund with $0 federal tax withheld because I've "already withheld an amount significantly more than my anticipated tax obligation." Nothing was withheld for federal though. Ugh, I just want to make sure I understand this correctly lol. Appreciate everyone's patience with me! I do feel like I understand a bit more now than I did before.

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Its-a-write-off t1_iu9afff wrote

Yes. It is correct to have no withholding. It is also well within reason to expect a 7k refund with 0 withholding. You get the child tax credits, and EIC tax credit. Which are pay outs to you from the government.

There is absolutely no reason you should be withholding federal income tax at your income.

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DonaldKey t1_iu9fn4x wrote

Each child is now a $3k credit

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8yseven t1_iu9vyki wrote

$2k each for 2022. It changed back after last year.

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InkognytoK t1_iuc73k4 wrote

I have dual income (married) no kids. I'm paying for your credits, enjoy. The Government views raising new tax payers as a bonus, future income. Others get taxed you get breaks.

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