My wife started working part-time at Target nearly a year ago, and since she's been there she hasn't had *any* federal or state taxes taken out. Ever. She makes less than $800/mo gross pay. When she filled out her W-4 form, she had put "1 - married". (She didn't claim "exempt" or anything.) Her paystub clearly shows "1 - married."
This doesn't seem right. I would expect the lower the number of exemptions she claims, the more taxes they would take out of her check each month. I don't encounter this with my full-time job. I claim "1 - married" and I have a lot of taxes taken out of my check each month!
Is retail different or does it have to do with her lower income? We're going to call their corporate office to learn more, but any suggestions would be appreciated.
2007-09-13 03:32:34 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Being in retail has nothing to do with it, it's income driven. Lower income translates to less taken out of paycheck for withholdings. If you make more than she does than your withholdings would be more than her withholdings even if you both claimed 1 - married on W-4.
2007-09-13 04:06:18 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I'm going to guess that you make a lot more than she does - that would explain why you have much more taken out.
The tables are the same for employees from all types of businesses.
Her salary is right on the edge of where she wouldn't owe any taxes if you make about the same amount, so they don't take anything out. If you make substantially more,then you'll very possibly end up owing when you file your return, since your incomes and withholding will be added together for a joint return.
She might want to change to married/zero allowances, or one or both of you might want to have extra taken out for federal withholding.
2007-09-13 17:03:20 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The problem is that your wife's job doesn't take in to account your income. No company does. When she claims "Married-1" the withholding tables assume that she is supporting two people on just her income.
If your income is substantially higher, she should claim "Married but withhold at the Single rate" and "O". Then you should see some taxes come out.
2007-09-13 03:42:11 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
First, you're able to alter your W4 at any time. you're incredible that it is not retroactive and could take effect with your next paycheck. 2d, what you declare on your W4 makes no distinction with the way you document your taxes. The W4 is for estimating withholdings in straightforward terms. you're able to document as single without dependents and, in case you won't have the capacity to be claimed as a based on somebody else's tax return, you will take your guy or woman exemption. 0.33, this might impact how lots you get on your refund. With 0 exemptions claimed they took out an stronger point of taxes that gets you a larger refund. once you regulate to a minimum of one exemption they'll take out much less taxes, you will get extra on your paycheck, and your refund on the top of the year would be decrease.
2016-10-10 12:14:09 · answer #4 · answered by bonura 4 · 0⤊ 0⤋
No, there is no difference because it's retail. The lack of withholding is due to the level of income. The link below will take you to a paycheck calculator, so you can verify the amounts that are being withheld (or not withheld)
2007-09-13 03:50:26 · answer #5 · answered by just_the_facts_ma'am 6 · 0⤊ 0⤋