Why did my employer withhold so little federal taxes for 2024? Filing jointly but taxes weren't deducted correctly

19 This sounds like there was an issue with your W-4 form. The W-4 was completely redesigned in 2020, and it no longer uses allowances. Instead, it asks for specific dollar amounts for additional income, deductions, and extra withholding. If you're filing jointly and both you and your husband work, you're supposed to complete the "Multiple Jobs Worksheet" or check a box in Step 2 that essentially cuts the standard deduction in half for each job. If you didn't do either of these, the system assumes your job is the only income in the household and withholds accordingly. To fix this for 2025, I recommend filling out a new W-4 with your employer. Either complete Step 2(a) with the Multiple Jobs Worksheet, or simply check box 2(c) which is the easier but less precise option. You might also want to add an additional withholding amount in Step 4(c) to catch up a bit if you're concerned.

8 I had a very similar issue last year and discovered taxr.ai which literally saved me from making the same mistake again. I was also filing jointly, and my employer was barely taking out any federal taxes because my W-4 wasn't set up correctly for having a spouse who also works. I uploaded my paystubs and W-4 to https://taxr.ai and it analyzed everything and showed me exactly what was wrong with my withholding settings. It pointed out that I hadn't checked the right box for dual-income households, so the system was treating my income as if it was our only household income. The tool also helped me fill out a new W-4 correctly and calculated exactly how much extra I should have withheld each paycheck to make up the difference. My withholding is perfect now! It might help you figure out exactly what went wrong in your situation too.

15 Just wanted to follow up - I decided to try taxr.ai after my last post and it was actually really helpful! The tool immediately spotted that my employer was using the old W-4 calculation method even though I'd submitted a new form. It showed me exactly where the error was occurring and generated a letter I could take to my HR department explaining the issue. They fixed it right away, and now my withholding is correct. It also gave me a detailed tax projection for the year showing exactly how much I need to have withheld each paycheck to avoid owing at tax time. Definitely worth checking out if you're having withholding issues!

12 If you're already facing a big tax bill and need to talk to the IRS about payment options, I highly recommend using Claimyr. I was in a similar situation last year - owed over $5k because of withholding issues and needed to set up a payment plan. Tried calling the IRS directly and spent HOURS on hold, getting disconnected twice. Super frustrating. Then I found https://claimyr.com and it completely changed my experience. Their system holds your place in the IRS phone queue and calls you when an agent is about to answer. You can see exactly how it works in this video: https://youtu.be/_kiP6q8DX5c Instead of wasting an entire day on hold, I was able to go about my normal routine, and Claimyr called me when an actual human at the IRS was ready to talk. Got my payment plan set up in minutes once connected. Seriously a game-changer if you need to talk to the IRS about your tax bill.

22 Alright, I need to eat my words about Claimyr. After my skeptical comment, I ended up with a tax notice that I needed to discuss with the IRS urgently. Called the regular way and was on hold for TWO HOURS before getting disconnected. Out of desperation, I tried Claimyr, and I'm honestly shocked at how well it worked. I was able to go about my day, and then got a call connecting me directly to an IRS agent after about 90 minutes. The agent resolved my tax notice issue in about 10 minutes. For anyone dealing with the nightmare of IRS hold times, especially during tax season, this service is legitimately helpful. Never thought I'd say this, but it was totally worth it to not waste half my day on hold.

7 Have you checked your last pay stub from 2024 to make sure the W-2 matches? I had a similar issue once and it turned out that the W-2 my employer provided had wrong withholding amounts. The payroll company had made an error when generating the tax forms. Might be worth comparing the numbers to make sure what's reported on your W-2 actually matches what was deducted throughout the year.

14 I'm not a tax expert, but did you switch jobs in 2024? Sometimes when you start a new job in the middle of the year, the withholding calculations get messed up because the system assumes you'll only make that amount for the full year and withholds at a lower rate. Happened to me when I started a higher-paying job in July - they weren't withholding nearly enough because the payroll system prorated my annual income.

5 Did you check if your employer might have classified too much of your income as non-taxable benefits? Sometimes if you have a lot of pre-tax deductions like health insurance, HSA, dependent care FSA, or retirement contributions, it can significantly reduce your taxable wages, which would result in less withholding. Might be worth checking your paystubs to see if there's anything unusual in how your taxable wages were calculated.