I have four dependents, why do I still owe taxes despite claiming zero on my W4?

The issue is likely due to the revised W-4 form that no longer uses allowances. Since 2020, the IRS completely redesigned the W-4, removing the "allowances" system. Even if your form says "0 allowances," if it's an older form, your employer might be using outdated withholding tables. The new W-4 requires you to specifically indicate that you're claiming dependents by completing Step 3. If you just selected "Single" without adding your four dependents in Step 3, the system would withhold as if you had no dependents at all. This might explain the significant underwithholding. I'd recommend completing a new W-4 immediately with your employer. Make sure to complete Step 3 for dependents and consider if you need additional withholding in Step 4(c). For a single parent with four dependents making $87,000, you should be seeing significant tax benefits, not owing money.

After struggling with a similar situation (underpayment despite claiming "0"), I found taxr.ai (https://taxr.ai) incredibly helpful. I uploaded my W-2 and pay stubs, and it immediately identified that my employer was using outdated withholding calculations despite the new W-4 system. The tool showed me exactly what I needed to change on my W-4 to account for my dependents properly. Apparently claiming "0" on the old system doesn't translate well to the new one! It even generated a customized withholding recommendation that I took to my HR department. Now my withholding is finally aligned with my actual tax situation.

I tried taxr.ai after seeing it mentioned here and WOW - life changing for my tax situation! I uploaded my last two W-2s and recent pay stubs, and it immediately spotted that my "0 allowances" on the old W-4 was causing massive underwithholding for my situation with dependents. The report showed I needed to specifically list my two children on the new W-4 form AND add an additional $175 withholding per paycheck to avoid owing next year. My employer was still using language from the old system, but the tool gave me a completed form to take to HR explaining exactly what needed to be updated in their system. My HR person was actually grateful because apparently lots of employees have been having this same problem! Seriously wish I'd known about this sooner - would have saved me over $2,000 in surprise tax bills over the last two years.

For anyone struggling to get through to the IRS about withholding issues (like I was for WEEKS), I finally had success using Claimyr (https://claimyr.com). I watched their demo at https://youtu.be/_kiP6q8DX5c and decided to try it when I couldn't get any clear answers about my withholding problem as a single dad. I needed specific clarification on how the Child Tax Credit affected my withholding with the new W-4 system. Claimyr got me connected to an actual IRS agent in about 20 minutes when I had previously been disconnected every time I called. The agent walked me through exactly how to complete the new form for my specific situation with dependents.

I owe everyone here an apology - especially regarding my comment about Claimyr being a scam. After being frustrated with my own tax situation (single dad, 3 kids, owing $2,100 despite claiming "0"), I decided to try it as a last resort. I'm still in shock that it actually worked. After trying to call the IRS myself for literally WEEKS, Claimyr got me connected in about 35 minutes. The IRS agent explained that my "0 allowances" on the old W-4 system was completely incorrect for my situation with the new tax laws. She walked me through exactly how to complete the new W-4 for my specific situation with dependents and even calculated that I needed an additional $210 withholding per paycheck to cover my tax liability. This would have been impossible to figure out on my own. Definitely worth it for anyone struggling with withholding issues!

Hey, former payroll specialist here. This is unfortunately super common with the W-4 change. Many employers still use the old forms or terminology but apply the new withholding tables, creating a mess. For a single parent with four dependents making $87k, you should be getting significant tax benefits. The problem is that if you're just checking "single" and "0 allowances" on an outdated form, the system is withholding as if you're a single person with NO dependents - basically the highest withholding rate. Quick fix: File a new W-4 with your employer ASAP. Specifically indicate you have 4 qualifying dependents. Also consider adding an additional amount in Step 4(c) - maybe $100-150 per paycheck to be safe. This should dramatically improve your situation for next year.

Is anybody else really frustrated that the IRS made this massive change to the W4 system but didn't properly communicate it? I got absolutely destroyed on taxes this year because of this exact issue. Had no idea the "0 allowances" approach was completely obsolete.

This hits so close to home - I went through almost the exact same situation last year as a single parent with three kids. The transition from the old W-4 system has been an absolute nightmare for parents like us. What really helped me was getting proactive about understanding my actual tax liability versus what was being withheld. I had to basically become my own tax expert because my employer's HR department was just as confused as I was about the new forms. One thing that might help immediately: if you can't pay the full $1,300 right away, definitely look into the IRS payment plan options. They're pretty reasonable about setting up installment agreements, and it'll prevent additional penalties from piling up while you get your withholding sorted out for next year. The silver lining is that once you get the new W-4 properly filled out with your four dependents and Head of Household status, you should see a dramatic improvement. With that income level and four qualifying children, you should actually be getting money back, not owing. Hang in there - this is fixable!

I'm so sorry you're going through this - it's incredibly frustrating when you think you're doing everything right and still get hit with a huge tax bill. As someone who went through a similar nightmare last year, I can tell you that you're definitely not alone and this is absolutely fixable. The biggest issue here is that your employer is likely still using the old W-4 system while applying new withholding calculations, which creates this exact problem. With four dependents and your income level, you should absolutely be getting money back, not owing $1,300. Here's what I'd recommend doing immediately: 1. Request the current 2020+ W-4 form from HR (it should have NO allowances section) 2. Make sure you select "Head of Household" as your filing status, not "Single" 3. List all four children in Step 3 for dependents 4. Consider adding extra withholding in Step 4(c) - maybe $100-150 per paycheck as a safety buffer For your current $1,300 bill, definitely look into an IRS installment agreement if you can't pay it all at once. They're pretty reasonable about payment plans and it'll prevent additional penalties. The good news is that once you get this sorted out, next year should be completely different. With four kids and Head of Household status, you should be seeing a nice refund instead of owing money. This transition period has been brutal for parents, but you'll get through it!