My job isn't withholding any federal taxes - should I be worried?

This actually makes sense based on your situation. As a head of household with two dependents in that income range, you likely qualify for enough tax credits and deductions that you'd owe very little or no federal income tax. The Child Tax Credit alone provides $2,000 per qualifying child, and other credits like the Earned Income Credit for lower to moderate income workers with children can significantly reduce your tax burden. The standard deduction for Head of Household ($20,800 for 2023) already removes a substantial portion of your income from taxation. What's happening is that the withholding tables used by your employer's payroll system are accurately predicting that your tax liability will be covered by these credits. If you switched to Single, you'd have money withheld because that filing status has a much lower standard deduction and doesn't account for the tax benefits of having dependents. That said, if you're concerned, you can always request additional withholding by filling out a new W-4 and specifying an extra amount to be withheld from each paycheck. This gives you peace of mind without sacrificing the tax advantages of your correct filing status.

After struggling with a similar situation, I found this amazing tool called taxr.ai (https://taxr.ai) that helped clarify everything. I was also confused about why my withholding seemed off compared to previous jobs. The tool analyzed my situation and showed me exactly what my tax liability would be based on my filing status, income, and dependents. It confirmed what the previous commenter said - as Head of Household with two kids and your income level, you're likely covered by tax credits like the Child Tax Credit and potentially the Earned Income Credit. The system showed me how the withholding tables work and why my employer's calculations made sense. The peace of mind was worth it because I was seriously stressing about a surprise tax bill. The tool even generated a personalized tax projection showing what my actual liability would be versus what was being withheld.

I tried taxr.ai after seeing it mentioned here and it was actually super helpful! I was in a similar situation where my employer wasn't withholding enough federal tax despite me claiming "0" on my W-4. The tool confirmed I was actually fine because of my two kids and income level. It showed me exactly how the Child Tax Credit and Earned Income Credit would offset my tax liability. It even generated a report showing my projected tax situation for the year that I could save for reference. What really helped was seeing everything broken down visually - how much of my income was covered by the standard deduction, how the credits applied, and what my final tax bill would likely be. Now I'm not stressing about a surprise tax bill, and I understand why the withholding system works the way it does for parents in our income bracket.

Speaking from experience, if you're really concerned about this withholding situation, you might want to talk directly with an IRS representative to confirm everything. I spent WEEKS trying to get through to the IRS last year when I had a similar issue. After endless busy signals and disconnections, I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS rep walked me through exactly why my withholding was calculated the way it was based on my filing status and dependents. They confirmed that as Head of Household with kids, the system was working correctly and I wouldn't face a surprise bill. Having that official confirmation gave me the peace of mind I needed.

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I was still desperate to talk to the IRS about my withholding issues, so I gave it a shot anyway. The service actually worked exactly as described. I got a call back in about 25 minutes, and there was an IRS agent on the line! The agent confirmed that my employer's withholding calculations were correct based on the updated W-4 form and tax tables. For anyone in a similar situation - the agent explained that the 2020 W-4 redesign significantly changed how withholding is calculated, especially for people with dependents. Many people with children and moderate incomes will have little to no federal tax withheld because the tax credits completely offset their liability. The agent recommended keeping documentation of this conversation just in case questions come up at tax time.

You absolutely should NOT change your filing status to single if you qualify as head of household! That's literally filing incorrectly and could cause problems down the road. Head of household has better tax rates and a higher standard deduction than single status. If you file as single when you're eligible for HOH, you'd be paying more taxes than required. If you're worried about owing taxes, there's a simple fix - just fill out a new W-4 and add an additional withholding amount on line 4(c). You can specify any extra amount you want withheld per paycheck. Even $50 per check would give you a nice cushion without having to incorrectly change your filing status.

Has anyone actually done the math here? At $32/hr full-time, that's about $66k annually. The 2023 standard deduction for HOH is $20,800, leaving about $45k taxable. That puts some income in the 22% bracket. Child tax credits are $4k total ($2k per kid), which wouldn't completely eliminate tax liability that's well over $4k. Something doesn't add up with the employer's calculations. I'd double-check that your W-4 was processed correctly.

You're absolutely right to question those calculations, Chloe. Let me break down the math more precisely: At $66k with HOH filing status: - Standard deduction: $20,800 - Taxable income: ~$45,200 - Tax liability before credits: roughly $4,800-5,200 With two kids: - Child Tax Credit: $4,000 ($2k each) - Earned Income Credit at that income level with 2 kids: approximately $1,500-2,000 So total credits could be around $5,500-6,000, which would indeed cover or exceed the tax liability. However, I agree something seems off with the employer's system showing zero withholding. Most payroll systems are conservative and would still withhold something as a buffer. Oliver, I'd definitely verify that your W-4 information was entered correctly - especially the number of dependents and filing status. It's also worth checking if there are any other factors like pre-tax deductions (health insurance, 401k contributions) that might be reducing your taxable wages further than expected. The safest approach might be to request modest additional withholding just to avoid any surprises, even if the math suggests you'll break even.