Walmart Employee Tax Tips

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If you worked for Walmart during the year, here’s what you should know about taxes.

File early to get your refund.

Most Walmart employees get tax refunds. If you qualify for the Earned Income Tax Credit, your refund could be as much as $7,000.

The faster you file, the faster you get your refund. It usually takes one to two weeks.

If you get the Earned Income Tax Credit or certain other child tax credits, the earliest you can get your refund is February 15th. That’s if you file one to two weeks before then.

You may not get a refund if…

While most Walmart employees get refunds, there are a few common reasons you may not get one.

First, you need to have a correct W-4. If you get married or divorced, have kids, have your kids move away, or have other family changes, tell HR you need to update your tax withholding.

Second, if you have two jobs, you need to put that on your W-4 too. Two jobs means a higher income and higher tax rate. If either thinks it’s your only job, it won’t take out enough taxes.

Third, if you have a 1099 side gig like Uber, that side gig won’t take out taxes. If you didn’t pay estimated taxes during the year, you’ll owe a big tax bill plus interest.

The Associate Stock Purchase Plan increases your pay.

The Associate Stock Purchase Plan lets you buy shares of Walmart stock. Walmart adds 15% when you buy up to $1,800 worth of stock per year.

That’s basically free money, so it’s usually a good idea to do this.

It’s important to know that this is not a retirement plan.

You don’t get a tax deduction on the money you put in. You also have to pay taxes on the 15% Walmart gives you.

But you can sell your stock at any time.

When you sell your stock, you may have to pay capital gains tax. However, if your income is under about $45,000 as a single filer or $90,000 as a joint filer, the tax rate will probably be 0%.

You’ll pay your regular income tax rate on any dividends you receive.

Use your Walmart 401(k) for tax savings now and retirement later.

The Walmart 401(k) lets you save for retirement while lowering your taxes now. Everything you put in gives you a tax deduction.

Walmart also matches your contributions up to 6% of your compensation. Examples:

  • You make $100 and put in $3 (3%). Walmart gives you $3.
  • You make $100 and put in $6 (6%). Walmart gives you $6.
  • You make $100 and put in $10 (10%). Walmart gives you $6.

You do not pay taxes on Walmart employer 401(k) matches.

You may also want to consider the Roth 401(k) option if you’re:

  • Part-time
  • Going to school for a different career
  • Retired from another career

With a Roth 401(k), you don’t get a tax deduction when you contribute. But unlike a regular 401(k), you don’t have to pay taxes when you take the money out in retirement.

Most people use a regular 401(k) because they expect their taxes to go down when they retire. If you expect to be making more money later or have income and savings from a prior job, your taxes might be lower while you’re working for Walmart.

Using a Roth 401(k) when your taxes are lowest can help you pay less taxes over your life even if you pay a little more now.

Walmart’s tuition reimbursement is tax-free.

Once you work for Walmart for at least 90 days, they’ll pay for you to attend certain college or trade school classes. This is in addition to your regular pay and is called Live Better U.

You normally don’t have to pay taxes when Walmart pays for Live Better U. The IRS usually has a $5,250 yearly limit on tax-free reimbursements. Since Walmart has arrangements directly with colleges, I don’t think your costs ever go over the limit.

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