STPS

Why Was No Income Tax Withheld From My Paycheck?

As a taxpayer, you’re probably used to income tax being taken out of your paycheck. However, when you looked at your pay stubs you noticed that it was not withheld. And while you might be excited at first, that you didn’t have to pay that tax, you can’t help but wonder if this will burn you come tax season. 

So why was there no income tax withheld from your paycheck?

federal income tax

There are six main reasons why your paycheck didn't get income tax withheld:

federal income tax

• You didn’t earn enough money:

Because of some recent changes in the W-4 Employee Withholding Certificate, earnings that are too low might not have their income taxes withheld at all.

Your filing status can also change how much income taxes are being withheld. Filings from a single person will have more withheld tax compared to someone that is married or is the acting head of a household.

federal income tax

• You’re a 1099 employee:

If you’re considered an independent contractor, there would be no tax withheld from your pay. In fact, your employer would not withhold any tax at all.

This guide explains how to file taxes as a 1099 independent contractor.

federal income tax

• You are exempt from income taxes:

You might have claimed to be exempt from withholding on your Form W-4. You must meet certain requirements to be exempt from withholding and have no income tax withheld from your paychecks. You should check with your HR department to make sure that you have the correct amount withheld.

federal income tax

• You live and work in different states:

Income Tax Withholding can get confusing when you live and work in different states. And each state law on taxes has its own special rules when calculating that withheld tax.

federal income tax

• There’s no income tax in your state:

If you live in Alaska, Florida, Nevada, Tennessee, South Dakota, New Hampshire, Washington, Texas, or Wyoming, you will not have to pay income taxes. These states typically charge higher sales tax to make up for their residents not paying income tax.

federal income tax

• There has been a payroll error:

If none of the reasons above apply to your situation, then there could have been an honest mistake with your payroll. At this point, it would be best to speak with them about any error you have found with your income taxes.

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Written by Gentry DeWinter

Gentry graduated from Grand Valley with a Bachelor’s Degree in multi-media journalism. She is an artist who loves videography, writing, and hopes to one day own multiple dogs.

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