No taxes withheld from paycheck all year - how much will she owe?

I just found out my roommate didn't have ANY taxes taken out of her paychecks for the entire 2024 year! She didn't realize something was wrong until she was talking to me last week about getting ready for tax season. She earned about $25,500 total and has a 3 year old son she claims as a dependent. She's freaking out now thinking she's gonna owe a huge amount and wondering if there's gonna be penalties too?? I told her she might qualify for some credits because of her kid, but honestly I have no clue how much she's going to end up owing. Can someone help me give her a ballpark estimate of what she's looking at? She's already stressing about how she'll come up with the money by April. Thanks for any help!

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18 comments

Daniel Washington

•8M

Your roommate's situation isn't as bad as it might seem! With a child dependent, she'll likely qualify for several tax credits that will significantly reduce what she owes. First, she'll get the standard deduction of $13,850 (for single filers), which immediately reduces her taxable income to around $11,650. At that income level, her federal tax would normally be about $1,200. However, she'll qualify for the Child Tax Credit (worth up to $2,000) and possibly the Earned Income Tax Credit (EITC) which could be worth around $3,500-$3,800 at her income level with one child. These are refundable credits, meaning they can reduce her tax liability below zero, potentially resulting in a refund. Honestly, with these credits, she might not owe anything and could actually receive money back. But she should file as soon as possible to find out for sure.

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Daniel Washington

•8M

There are underpayment penalties when you don't pay enough throughout the year, but they only apply if you owe more than $1,000 at tax time. Since your roommate will likely qualify for enough credits to offset her tax liability, she probably won't face penalties. If she does end up owing something, the penalty is essentially interest on the unpaid amount - usually around 3-4% annually. So even in a worst-case scenario where she owes something, the penalty wouldn't be huge on a small amount.

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Anthony Young

•8M

After dealing with a similar situation last year (no withholding, panicked about a huge tax bill), I found this amazing tool called taxr.ai (https://taxr.ai) that really helped me figure out my liability before filing. It analyzed my situation and gave me a really accurate estimate of what credits I qualified for. The interface is super easy - you just upload your documents or enter your info, and it breaks everything down in plain English. It even caught some credits I didn't know I qualified for! Definitely helped calm my anxiety about the whole situation.

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Anthony Young

•8M

It definitely works for self-employment income! I actually had a mix of W2 and some freelance work, and it handled everything smoothly. It has specific sections for different income types and guides you through all the potential deductions for 1099 income. It was surprisingly accurate for me - within about $50 of my actual tax bill after I filed with TurboTax. What impressed me most was how it explained WHY I qualified for certain credits and deductions, not just throwing numbers at me. Made me feel much more confident about my actual filing.

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Charlotte White

•8M

Just wanted to update - I tried out taxr.ai after seeing the recommendation here and wow! It totally simplified my tax situation. I've been stressing about my mixed W2/1099 income, but the tool broke everything down clearly and showed me I was actually eligible for deductions I had no idea about. It estimated I'd get about $1,800 back instead of owing like I feared. Just filed yesterday using the info it gave me, and the numbers matched up exactly with what my tax software calculated. Saved me so much anxiety and probably saved me money too since I would've missed some of those deductions!

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Matthew Sanchez

•8M

If your roommate needs to talk to the IRS about her situation (which might be a good idea), she should try Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS about a similar withholding issue last year - constant busy signals or being on hold for hours only to get disconnected. Found Claimyr and they got me connected to an actual IRS agent in about 15 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. They basically navigate the phone tree and wait on hold for you, then call you when they've got an agent on the line. The IRS agent I spoke with was actually super helpful and walked me through my options.

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Matthew Sanchez

•8M

It works by using technology to continuously dial and navigate the IRS phone systems. The IRS has these complex phone trees and limited capacity, so most people get busy signals or excessive wait times. Claimyr's system keeps trying until it gets through, then navigates the menu options automatically. The person you talk to is 100% an actual IRS employee. They don't impersonate anyone or connect you to third parties - that would be illegal. They literally just get you to the front of the phone queue and then connect your real phone number directly to the real IRS agent. The IRS has no idea you used a service to reach them, they just think you called and waited like everyone else.

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JacksonHarris

•8M

Alright, I need to eat my words from before. I was super skeptical about Claimyr but I was desperate to talk to someone at the IRS about my back taxes situation. I tried it yesterday and I'm honestly shocked - I got connected to an actual IRS agent in about 20 minutes! After weeks of trying on my own and never getting through, this was mind-blowing. The agent answered all my questions and even set up a payment plan for me. Saved me hours of frustration and probably a lot of additional penalties by getting my issue resolved quickly. Never thought I'd say this, but dealing with the IRS was actually... painless?

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Jeremiah Brown

•8M

She can ask her HR department or payroll provider for a copy of her current W-4 on file. Most employers will readily provide this. She can also just look at her pay stub - it usually shows the withholding status or at least the amount being withheld (which in her case would be $0). While she's at it, she should file a new W-4 right away. The form was completely redesigned a few years ago and no longer uses allowances. Instead, it has a more straightforward worksheet approach. The IRS also has a Tax Withholding Estimator tool on their website that can help her figure out exactly what to put on the new form.

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