If you’ve recently received a paycheck for under $600 and noticed that no federal income tax was withheld, you might be wondering if that’s a mistake or a sign of something bigger. You’re not alone. Many employees—especially part-time workers, freelancers, seasonal employees, or those working multiple jobs—have had the same experience.
In this article, we’ll break down why no federal income tax might be withheld on paychecks under $600, how the U.S. tax system handles such cases, what you need to know to avoid surprises at tax time, and how you can ensure you’re meeting your tax responsibilities.
Understanding Federal Income Tax Withholding
To understand why your paycheck didn’t have federal income tax withheld, we need to go back to the basics.
In the United States, federal income tax withholding is the process by which employers deduct a portion of an employee’s wages to prepay part of their expected annual income tax liability. This system is “pay-as-you-go,” meaning the IRS gets its share of your income as you earn it throughout the year.
Key Components of Withholding:
- W-4 Form: This form tells your employer how much federal income tax to withhold based on your filing status, dependents, and other factors.
- IRS Tax Tables: The IRS provides tables that help employers calculate how much tax to withhold from each paycheck.
- Pay Frequency and Amount: The amount withheld depends on how much you earn and how often you’re paid.
Why No Federal Tax Is Withheld on Small Paychecks
1. $600 Is Not a Tax Threshold
Contrary to what many believe, the $600 amount has no special meaning when it comes to federal income tax withholding from wages. The $600 figure is more commonly associated with 1099 forms, where businesses are required to report payments made to independent contractors. But for employees, income tax withholding is based on earnings, withholding allowances, and IRS tables, not a hard $600 rule.
So, if your paycheck is under $600 and you noticed no federal tax withheld, it’s likely due to one or more of the following factors:
2. You Didn’t Earn Enough to Trigger Withholding
The IRS tax withholding tables include standard deduction adjustments. If your total earnings for the pay period are low enough, the system assumes your yearly income will fall below the standard deduction, and therefore no federal income tax is withheld.
- In 2024, the standard deduction for a single filer is $14,600.
- If you earn $500 per paycheck and are paid biweekly, your annual income might be estimated at $13,000.
- Since that’s below the standard deduction, the IRS tables suggest no federal tax withholding.
3. Your W-4 Tells Your Employer Not to Withhold
When you start a job, you fill out IRS Form W-4. This form determines how much federal income tax your employer should withhold based on:
- Filing status (Single, Married Filing Jointly, etc.)
- Number of dependents
- Additional income or deductions
- Whether you want extra withholding
If you claimed dependents, or checked the box indicating multiple jobs, or didn’t fill out the form completely, it may result in lower or zero withholding especially on small paychecks.
4. You Claimed Exempt Status
You can write “EXEMPT” on your W-4 if you meet both of the following:
- You had no federal tax liability in the previous year
- You expect to have no federal tax liability in the current year
If you qualify and claim exempt, your employer will not withhold federal income tax, regardless of how much or how little you make—unless your exemption is no longer valid.
5. You’re Under a Certain Income Threshold
The IRS does not require federal income tax withholding from employees who don’t expect to owe taxes at the end of the year. If your income is well below the filing requirement thresholds, no withholding may be triggered.
Here are the 2024 filing thresholds:
- Single under 65: $14,600
- Married Filing Jointly under 65: $29,200
- Head of Household under 65: $21,900
If your projected annual income is below these thresholds, you may not owe any federal tax, and therefore none is withheld.
What About Social Security and Medicare?
Even if federal income tax isn’t withheld, you may still see FICA taxes deducted from your paycheck.
FICA includes:
- Social Security tax: 6.2% of wages
- Medicare tax: 1.45% of wages
These taxes are always withheld (unless you qualify for a specific exemption, such as being a nonresident student working on campus), regardless of how much you earn.
So don’t be surprised if your paycheck under $600 has no federal income tax, but still includes deductions for Social Security and Medicare.
What This Means for You
1. You May Owe Tax at the End of the Year
Just because no tax is withheld now doesn’t mean you won’t owe it later. If your income increases, or you work multiple jobs, your total annual income may cross the taxable threshold—and the IRS will expect its cut.
Let’s say you work multiple part-time jobs and make:
- $500 biweekly at Job A
- $300 weekly at Job B
Individually, each job may not withhold tax. But combined, you could earn over $20,000 in a year—well above the standard deduction.
At tax time, the IRS will calculate your total income, subtract the standard deduction, and expect you to pay federal tax on the rest.
2. It’s Your Responsibility to Plan Aheaz
If no federal income tax is withheld and you end up owing taxes, you could face:
- A surprise tax bill
- Penalties for underpayment
- Difficulty paying a large amount all at once
That’s why it’s important to check your pay stubs, estimate your total annual income, and adjust your W-4 if necessary.
What You Can Do
1. Use the IRS Tax Withholding Estimator
The IRS offers a free Tax Withholding Estimator to help you determine how much should be withheld based on your situation.
You’ll need:
- Recent pay stubs
- Your most recent tax return
- Info about other income sources
This tool can tell you if you’re on track or if you need to make changes to avoid underpayment.
2. Update Your W-4
You can submit a new W-4 form to your employer at any time. To increase withholding, you can:
- Lower your number of dependents
- Enter additional income in Step 4(a)
- Request extra withholding in Step 4(c)
For example, you might write in an extra $25 or $50 per paycheck to be withheld, even if your wages are low.
3. Make Estimated Tax Payments
If you’re not having enough withheld, or if you’re self-employed or working gigs on the side, you may need to make quarterly estimated tax payments using Form 1040-ES.
This helps you:
- Avoid large year-end tax bills
- Stay compliant with IRS requirements
- Minimize penalties
4. Track All Your Income Sources
Even if each job or gig is small, the IRS sees the total picture. You should:
- Keep track of all W-2s and 1099s
- Use bookkeeping apps to record your income
- Save money from each paycheck just in case
Common Scenarios
Let’s break down a few real-life examples:
Scenario 1: Part-Time Student
- Works 10 hours a week at $15/hour
- Earns ~$600/month
- No federal income tax withheld
- Likely under standard deduction
- Likely won’t owe tax at year-end
Scenario 2: Multiple Gig Jobs
- Earns $400/week from food delivery
- $200/week from freelance writing
- No tax withheld (self-employed)
- Total annual income ~$30,000
- Will owe taxes and must file a return
Scenario 3: Full-Time Job Plus Side Hustle
- $500/week at retail job (W-2)
- $300/week dog walking (1099)
- Only W-2 income has some withholding
- Side hustle income is untaxed
- Needs to plan for self-employment tax and income tax
Final Thoughts
The absence of federal income tax on a paycheck under $600 doesn’t necessarily mean you’re off the hook. It may be:
- A sign that you’re below the taxable threshold (for now)
- A result of how you filled out your W-4
- A temporary situation that will change as your income increases
To stay ahead:
- Review your W-4 regularly
- Use the IRS estimator
- Keep track of all income
- Make estimated payments if needed
Being proactive is key to avoiding tax-time surprises. A small paycheck today can still lead to a big tax bill tomorrow—so it’s worth keeping an eye on your total income and withholding status throughout the year.