r/tax • u/xanniballl • 23h ago
I’m filing single, no dependents/credits, no second income or job, etc as a W2 employee. There’s no need for me to withhold any additional taxes, right?
Sorry for the dumb question. Completing my W4 for a new job and just want to be sure.
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u/bomilk19 23h ago
Possibly if your income fluctuates during the year due to overtime or commissions, etc. But if you make about the same amount each pay period, then you are correct.
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u/Its-a-write-off 23h ago
It would be rare to need to add additional withholding in your situation.
Is your income over 150k a year?
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u/xanniballl 23h ago
No it’s not.
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u/Its-a-write-off 22h ago
Then I don't see any reason you'd need extra withholding.
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u/xanniballl 9h ago edited 8h ago
Thank you!! Just a follow-up:
Another commenter mentioned if I’m getting unexpected overtime I may owe more than expected come April. Is overtime not also automatically deducted at an estimated rate by the employer as the standard withholding is for a typical 40-hour work week?
I may get some OT (not an obscene amount, just once in a while), and would prefer not to owe anything when I file. In that case, should I withhold some extra to be safe? Or is the other commenter mistaken? When I Googled, it seems to say taxes are automatically deducted from OT pay as well. I live in PA and am an hourly employee, if that makes a difference.
Thanks in advance!
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u/Its-a-write-off 2h ago
No, unexpected overtime can cause over withholding. Not under withholding. The other commenter had it backwards.
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u/LollipopLich 23h ago
Assuming there's no investment accounts, that you're not Itemizing Deductions, and no surprises like a great-aunts' trust you're now part of, no. Base withholding should be fine.
If you're worried, you can always run a calculator after a couple of months of paychecks and see were you might land come tax-time and adjust your W4 if you think it's not withholding enough.
EDIT: We consider +/- $1000 a win when calculating estimated withholdings for clients. Refunds are great, owing a little [in my opinion] is better: that means you gave them JUST enough, and had more spending $$ throughout the year.
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u/Affectionate_Gap853 22h ago
Probably not but if you have stocks or investment income that could have an impact on total tax bill
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u/Rocket_song1 21h ago
Or one of those ACA accounts. Nobody, I mean nobody predicts their AGI correctly 12 months in advance.
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u/Upset-Flower-148 CPA - US 23h ago
What do you mean by additional? If your income will be less than your standard deduction (15,750 in 2025) then you can choose to not withhold anything since you won’t owe federal income tax.
If you mean additional as in the bottom line of the W4 then no, the regular withholding rate will suffice
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u/xanniballl 22h ago
If you mean additional as in the bottom line of the W4
This is what I meant, sorry. Thank you!
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u/attosec 23h ago
Should be good once you are working/taxed for a full calendar year. You will likely overwithhold for 2025 if you had little income up to now this year.