I live in New York City, and I recently got a temp job through an agency (also in NYC).
On my W4, I claimed “Exempt” from taxes because last year, I had no tax liability, and this year, I can reasonably expect the same (I had no income most of the year, plus significant medical expenses). The payroll guy at the temp agency, however, refuses to list me as “Exempt.” He says that I can only claim “Exempt” if I'm either (1) a full-time student, or (2) working on an H1B Visa. He says that this is a NYC regulation, but I haven’t been able to find information about this regulation anywhere.
I’ve shown him the section on the W4 that states the rules for claiming exemption. He says I’m just illegally trying to avoid paying taxes. He has refused to see any documentation I have that proves (according to the rules on the W4) that I should be exempt.
Here’s my ?: Who’s right? If I’m right and he refuses to let me claim “Exempt,” how can I stop him from doing this, eg, do I report him to IRS?
2006-10-12 04:14:20 · 3 answers · asked by annelidic 1 in Business & Finance ➔ Taxes ➔ United States
The W4 is a Federal form, so I can't see how it could be affected by a Municipal regulation. It seems to me that the payroll guy is uneducated in tax law. Being a student DEFINITELY does NOT exempt you from paying federal and state income taxes, nor does working on a Visa.
Request that he get clarification from the IRS on the issue. If he will not, then climb the chain of command - talk to his boss. Keep going 'till someone listens. Make sure you show them the instructions for the W4 so they can see for themselves. Tax Professionals also deal with this, and they could call a reputable firm for the answer to thta question.
If this is not possible, then you'll want to contact the IRS. There is a link on their website that I will attach. I am also attaching the relevant chapters of Publication 15, the Employer's Tax Guide, that states the rule clearly.
2006-10-12 07:23:43 · answer #1 · answered by Katie Short, Atheati Princess 6 · 1⤊ 0⤋
For the Federal W-4, you are correct. for the NY state equivalent, I don't know. New York law has no jurisdiction for Federal Taxes. Which part of the instructions printed on line 7 of the W-4 do they refuse to understatnd?
2006-10-12 13:13:27 · answer #2 · answered by STEVEN F 7 · 0⤊ 1⤋
He can not refuse to let you claim exempt.
2006-10-12 04:22:43 · answer #3 · answered by Anonymous · 1⤊ 1⤋