Taxes, Pay, W2. Corporate? Help!!

Joined
Aug 2, 2021
Messages
235
This is very confusing so I’m going to break it down.
A TM received her w2 and it said nothing was taken out the entire year. $0. When you look at her paystub last year it shows money was taken out. Every pay check.
When she did her taxes she ended up owing a big amount. She didn’t give an amount but she said she had to pay it all.
The HR said to talk to her tax person and the tax person said to talk to her employer (Target)
What steps should she take? What forms? Who to call?
Thanks for any help. Any advice or any thought of why?
 
Money can be taken from each paycheck for different purposes. Everyone, no matter how many exemptions they claim, will have FICA deducted for Social Security and Medicare.
However, not everyone has money deducted for income tax, whether federal or state (or local, depending on your city). That can be influenced by the gross pay amount (it has to be enough to trigger a deduction, even if the employee claims 0 exemptions). Or, less will be withheld if the employee claims more exemptions.
Your friend should examine her pay stub for the last pay date of 2022. The amounts withheld for FICA and income taxes should equal what is shown on her W-2. (If she no longer has the paper stub, she can look it up online.)
If there are discrepancies - which would be really unusual - she can get a corrected W-2 from Target and file an amended return.
If she wants to avoid a similar situation next year, it'd be a good idea to fill out a new W-4 form and make sure she's claiming an appropriate number of exemptions. The fewer exemptions claimed, the more will be withheld.
I know some people who claim 0, although they could claim more, so they get a fat refund - sort of like a no-interest savings account that they use for their family vacation. Not my preference but it works for them.
 
Back
Top