For many people, tax season may be a challenging time, especially if you’ve recently entered the workforce or had your job status change. If no federal taxes were deducted from your income, do you still need to file taxes? is a frequent query. Yes, you still need to file a tax return, is the quick answer.
You can still owe taxes on your income even if your employer didn’t deduct any federal income taxes from your cheque. This is due to the fact that federal income tax is only one kind of tax that you can have to pay. State income taxes, Social Security taxes, and Medicare taxes are among other tax categories.
You are exempt from filing a federal income tax return if your income was less than $12,400 in 2020 (or $12,550 in 2021). However, you must submit a tax return and pay self-employment tax if your self-employment income exceeded $400. Furthermore, you might still want to submit a tax return if you had taxes withheld from your income but made less than the filing threshold in order to get a refund.
What happens if your employer fails to deduct your Social Security tax may also be a concern. You are still obligated to pay your fair share of Social Security taxes in this situation, which amount to 6.2% of your salary up to a specific amount ($142,800 in 2021). You’ll have to pay these taxes yourself when you file your tax return if your employer didn’t withhold them.
Employers in Ohio are obligated to deduct state income tax from their employees’ paychecks. Additionally, you must deduct Social Security, Medicare, and, if appropriate, federal income tax. These taxes are routinely paid to the relevant governmental organizations.
Through the use of a withholding system, payroll taxes are collected. You must complete a W-4 form when applying for a job in order to advise your employer how much tax should be deducted from your pay. Your income, filing status, and other factors will determine how much you owe. Then, on your behalf, your company sends this money to the government.
In conclusion, you could still need to submit a tax return and pay taxes on your income even if no federal taxes were deducted from your salary. It’s always a good idea to speak with a tax expert or use tax software to help you navigate the procedure if you’re unsure of your tax obligations.
You must register with the Ohio Department of Taxation in order to receive an employer withholding number in Ohio. You can fill out Form UT-1000, Ohio Business Gateway Registration, by mail or register online through the Ohio Business Gateway. You will receive your Ohio employer withholding account number as well as any further required tax information once your registration has been processed.