I want to file exempt for 3 months. How would this affect me when I file taxes for 2006.
2006-09-23 17:06:51 · 5 answers · asked by peaches and cream 2 in Business & Finance ➔ Taxes ➔ United States
You may only claim exemption from withholding tax if the following two items BOTH apply:
For 2005 you had a right to a refund of all federal income tax withheld because you had no tax liability AND
For 2006 you expect a refund of all federal income tax withheld because you expect to have no tax liability.
Not only would you have to repay any underpayment, but if you underpay by too much, you may also end up owing a penalty.
Exact effects depend on your specific situation.
See IRS publication 505 for further details.
2006-09-23 17:28:21 · answer #1 · answered by Cookie Mom 2 · 0⤊ 0⤋
This is too little information. If you mean "exempt" on your W-4 withholding certificate at your job, you can change that many times during the year. But, why would you do that? Of course, if you have no withholding tax, then you could owe the IRS a lot of money at tax filing time....
2006-09-24 00:09:51 · answer #2 · answered by rockEsquirrel 5 · 0⤊ 0⤋
By 3 month exempt what do you mean?
Do you mean your Earn income (W2) is exempt from taxes for 3 month? Do you mean you are in a combat zone in 3 month and you are exempt from taxes. If so combat zone pay do not show up on a w2 as taxable wage.
2006-09-27 11:26:15 · answer #3 · answered by Kenshin 5 · 0⤊ 0⤋
depends on how much you make..i advise you not to..most people usually owe when they try to file that way...claim an outstanding amount of dependants..you can claim up to 9 anything over that you will be audited...than just claim the correct amount of dependants when filing taxes at the end of year
2006-09-27 14:27:33 · answer #4 · answered by twinky 2 · 0⤊ 0⤋
your question is not clear be more specific about exempt if you mean exemption then how many and how much income you expect and how many exemption you really have
2006-09-24 00:14:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋