IRS Federal Tax Withholding Examples

For Tax Year 2022 you can find examples of IRS Tax Withholding amounts based on filing status, income, and number of dependents. As you can see below, some scenarios do not require federal tax withholding and will not result in you owing taxes. Plus there are cases when no tax withholding is required and a tax return can still result in a tax refund is still due to refundable tax credits.

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W-4 Federal Withholding Examples

Each section below is divided by IRS filing status as this is needed on your W-4. Keep in mind, you can change your filing status on your W-4 for planning purposes as it might increase or decrease your IRS tax withholding amount. However, on your tax return, you must use the correct filing status.

• For Tax Year 2021, the Child Tax Credit (CTC) amounts increased on 2021 Tax Returns for taxpayers with qualifying dependents. For Tax Year 2022, 2023, the Child Tax Credit amounts are set to be reverted to the levels of 2020 - generally, $2,000 per child. 
• When you create your state income tax withholding form, you can lean on the results of the IRS W-4 Form. See a detailed IRS tax withholding publication.

See also: how much do I need to make to file taxes?

The examples below are simple scenarios where a taxpayer can earn $12,000, $40,000, or $60,000 annually and not have to withhold too much money from their paychecks. When you balance your withholding, you get to keep your money during the year without having to wait to get it refunded back to you when you file your taxes. All calculations below are done via our free 2022 Tax Return Calculator.

Single

Low-income singles with no dependents may be owed a small refund even if they have no dependents. If claiming dependents as a single person, see the head of household table below.

Married Filing Separately

Married persons who are filing separately from their spouse must use this status; they cannot claim head of household if they are legally married.

Head of Household

The head of household is a unique and beneficial status for single people with one or more dependents. You can only claim this filing status if you claim a dependent and maintain a house for yourself and the dependent(s).

Married Filing Jointly

As a married person, you and your spouse can combine your income on a joint return which entitles you to higher deductions and potential credits based on your income.

Based on the examples above, you can see that withholding a certain amount during the year allows you to claim more money with each paycheck and still not owe any taxes or be owed a refund when you consider your filing status, dependents, and income. Start your free W-4 now and begin keeping more of your money during the year.

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