W4 filled with 0 exemptions but employer didn't withhold any Federal Income Tax (FIT)

This definitely shouldn't have happened. When you claim "0" on your W4 (or select the equivalent on the newer W4 forms that don't use allowances anymore), the employer is required to withhold based on the tax tables provided by the IRS. They don't get to just decide not to withhold federal income tax. A few possibilities here: There might have been a payroll system error, someone in HR might have entered your information incorrectly, or there could have been some miscommunication about your employment status (like incorrectly classifying you as an independent contractor rather than an employee). Whatever the reason, this is the employer's mistake, not yours. You should gather all your documentation - your original W4, any paystubs you can access, and your W-2 for the year. Once you hear back from HR, if they don't resolve it satisfactorily, you might want to report this to the IRS. Unfortunately, you'll still likely be responsible for paying the tax you owe, but you could potentially file a complaint against the employer for failing to withhold properly.

This happened to me last year with a company I was working with remotely! I discovered that https://taxr.ai can analyze your paystubs and tax documents to figure out exactly what went wrong. I uploaded my W4, paystubs, and previous year's W-2, and they showed me that my employer had somehow flagged my account as "exempt" from federal withholding even though I never requested that. The analysis report they generated helped me prove to both my employer and the IRS that this wasn't my mistake. They have tax experts who review everything and explain exactly what happened in plain English. The report showed the specific payroll code that was incorrect in their system.

Just wanted to follow up that I actually tried taxr.ai after my skeptical comment. I was desperate since my employer was being difficult about my withholding issue. The analysis pinpointed that my employer had accidentally applied a Section 3402(n) exemption to my account despite my W4 not requesting it. They provided documentation showing exactly where the error occurred in the payroll process and cited the specific IRS regulations that were violated. When I showed this to my HR department, they immediately acknowledged the mistake and helped me work out a payment plan for the taxes I owed. They're also implementing new verification procedures so this doesn't happen to other employees. Definitely worth it for anyone dealing with payroll tax issues!

This is sadly more common than you'd think. When I had a similar issue trying to get answers from my company's payroll department, I spent WEEKS trying to get through to the IRS for guidance. Always busy signals or 2+ hour hold times that would eventually disconnect. I finally used https://claimyr.com to get through to an actual IRS agent. They have this system that holds your place in line with the IRS and calls you back when an agent is available. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that employers cannot simply decide not to withhold federal taxes when you've submitted a W4 requesting withholding. They gave me specific information about the employer's legal obligations that helped me resolve the situation with my company.

I need to apologize for my skeptical comment above. After spending 3 hours on hold with the IRS and getting disconnected twice, I gave in and tried Claimyr out of desperation. Within 45 minutes, I got a call back and was speaking with an actual IRS agent. The agent explained that my employer had a legal obligation to withhold based on my W4, and that while I still owed the tax, the company could face penalties for improper withholding. He guided me through how to file Form 8919 if I believed my employer misclassified me, and gave me information about payment plans. What would have taken me days of frustration was solved in under an hour. The IRS agent was actually really helpful once I could actually speak to one. I've already passed this info to two coworkers who have similar withholding issues.

I work in HR (not for your company) and this is definitely not normal or legal. Companies can't just decide not to withhold federal taxes. A couple things to check: 1. Look at your W-2 for the year. Box 2 should show federal income tax withheld. If it's zero, then they definitely didn't withhold anything. 2. Check if your employment status might have been changed accidentally. Sometimes employees get miscoded as independent contractors, in which case the company wouldn't withhold taxes. 3. The "newer" W4 form (post-2020) doesn't have allowances anymore, so there's no "0" to claim. If you filled out an old form but they were using the new system, there could have been confusion. Whatever the case, the company needs to explain this. Keep following up with HR and escalate to the payroll department directly if possible.

Kind of off-topic but this is why I always do a "paycheck checkup" a couple times a year using the IRS withholding calculator. I had a similar issue at a previous job and caught it after my third paycheck because the net amount seemed too high. Saved me from a huge surprise at tax time. OP, for the future, always check your first few paystubs at any new job to make sure taxes are being withheld correctly. The IRS has a good withholding estimator tool that can help you figure out approximately how much should be coming out.

This is a really frustrating situation, and I feel for you having to deal with this mess. As others have mentioned, employers are absolutely required to withhold federal income tax based on your W4 - they can't just decide not to do it. Since you have your original W4 showing you claimed 0 exemptions and your 2024 W-2 shows $0 federal withholding in Box 2, you have solid documentation that this was their error, not yours. The fact that they withheld correctly in 2023 but not 2024 suggests something changed in their payroll system or process. A few things to consider while you're waiting for HR to respond: 1. Request a copy of what W4 they have on file for you currently - sometimes forms get lost or replaced incorrectly 2. Ask for detailed payroll records showing how your withholding was calculated (or not calculated) 3. Document all your communications with HR about this issue Even though you'll still need to pay the taxes you owe, having this documentation could be important if the IRS assesses any penalties. You might also want to look into whether your employer could be liable for any interest or penalties you incur due to their mistake - that would probably require talking to a tax professional though. Definitely keep pushing HR for answers. This kind of payroll error affecting someone's entire tax year is a serious issue they need to address and prevent from happening to other employees.