No federal tax is being taken out of my paycheck?

Question

I have a partime job i get paid $270.00 bi weekly i have no dependents and i am married filling jointly and no federal tax is being taken out of my paycheck? what should i do? oh and my husband and I both have fulltime jobs.

Answer 1

Each employer calculates the tax as if that is your only job. For a married person with 0 withholding allowances, no tax is withheld from a bi-weekly check unless your income is over $308. That's why you're getting 0 withheld and changing your allowances won't help.

Since you have other income, fill out a new W-4 form and claim 0 withholding allowances. Then put the amount you want withheld on line 6 of the W-4. If you're in the 15% bracket, you'll probably want 15% of $270 ($40.50). If you're in the 25% bracket, it would be $67.50.

You can check the IRS withholding tables to see what the employer will withhold based on your income and the withholding allowances you claim at http://www.irs.gov/pub/irs-pdf/n1036.pdf or http://www.irs.gov/pub/irs-pdf/p15.pdf

Answer 2

Actually... are they deducting Social Security and Medicare? The way you have it worded, it sounds as though they are but not deducting Federal withholding, meaning you are definitely an employee. According to the Circular E, Employer's Tax Guide relased by the IRS each year that governs the amount to withhold for each employee based on the information they provide on the form W-4... you're not supposed to be having Federal tax withheld. For a married filing joint employee with 0 dependents receiving $270 bi-weekly, your Federal withholding is $0.

Depending on whether or not you were required to pay last year or whether you received a refund, you might want to look into having Federal withholding taken out of that paycheck, and use your full-time paychecks as your main means of income. You would simply go to your employer and request that they take out an addition $10, $20, $50, whatever you want.

In the event that you're not having Social Security and Medicare taken out, and you're simply receiving a check for $270 each week, then you're not considered an employee, you will receive a 1099 at the end of the year, and you need to start setting aside taxes. It will be considered self-employment income, and you will owe self-employment taxes of 15.3% in addition to your Federal income tax on your earnings from them.

Hope this helps!

Below is a link to the IRS forms and publication site if you want to take a look at the Circular E.

Answer 3

Each company takes out like they are your only job - when you go to file your return, it all gets added together so you'll owe taxes on it. No matter what you put on your W-4 form, there would be little if any tax taken out for that amount of income. You can note on line 6 ofyour W-4 for them to take out a particular additional amount, maybe $50, from each paycheck - that should solve your problem at tax time. File a new W-4 with your employer soon. Since you already have almost half of the year in without anything taken out, you might want to increase the $50 amount if you've been working this second job all year.

Answer 4

if you will be filing a 1099 (which means they did not deduct taxes) then you will be responsible for putting aside some money to pay that. chances are, if you typically get a refund, then maybe you will be close to breaking even. I cant fully answer your question without all of the details and such, but you will just need to plan to pay the taxes on your additional income.

If it is not a contract position, then go talk to the person who types up paychecks and see if you need to change your W-4 form to allow them to hold appropriate taxes. Also if you withhold as a single person on federal and state if applicable, they take more out so that when tax season comes around you dont end up paying so much out of pocket if any. hope this helps.

Answer 5

If you want federal withholding, change your W-4. You probably have it listed as Married with 1 exemption (or 2). If you change it to married with zero (or married but withhold at the higher single rate), then you'll get some tax withheld.

The more exemptions, the less tax is withheld.

It's no fun to write a big check on 4/15.

Answer 6

Are you being paid cash? It could be that your income is not taxable!! 26 (how many times you get paid in a year) multiplied by 270 ( your biweekly pay) = 7020 your standard deduction is 10300 for filling joint plus 3300 per exemption times 2= 6600 + the 10300 =16900) which is well above your earnings. Ask them why.

Answer 7

Ask your employer why they are not. Then ask that they start.

Answer 8

take advantage of it. hee hee