Discover the top 4 reasons your paystub or W-2 Box 2 shows $0 federal withholding and how to fix it before April 15.
No federal tax is withheld when your paycheck earnings for that pay period, annualized, are lower than the standard deduction ($15,000 Single / $30,000 Married Jointly in 2026). It also happens if you claimed Exempt on your W-4, or if large pre-tax deductions reduced your taxable pay to zero.
Federal tax withholding uses IRS Publication 15-T tables. If you earn $500 biweekly ($13,000/yr), your pay is below the $15,000 Single standard deduction, so the tax table automatically withholds $0.
If you wrote "Exempt" on Step 4(c) or Box 4 of your W-4, payroll is legally required to withhold $0 federal income tax.
Pre-tax benefits reduce your taxable wages on your paystub. If gross pay minus pre-tax benefits drops below the threshold, withholding becomes $0.
If you have two part-time jobs and neither job individually exceeds the standard deduction floor, BOTH jobs will withhold $0 — but your COMBINED income may owe tax!
Use Withholdwise to check your total household income and calculate the exact Step 4(c) extra tax per paycheck needed to cover your taxes.