im 17 this is my second job i had my first from 2004-2005 but no job until now and i dont know if im exempt on line 7 of w-4 form?
2006-10-21 22:56:28 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The W-4 instructions say:
You cannot claim exemption from withholding
if (a) your income exceeds $850 and includes
more than $300 of unearned income (for example,
interest and dividends) and (b) another person can
claim you as a dependent on their tax return.
So if your parents claim you AND you have over $300 of interest income, then no, you are not exempt.
If you got all your taxes paid in back last year, and you're not going to have a lot of income this year (likely starting this late in the year) then you might well be exempt. It depends on how much you'll be making total for 2006, which you didn't specify. Even if you're exempt this year, you'd very possibly have to change it for 2007 if you'll be making a lot more through the year.
2006-10-22 06:54:03 · answer #1 · answered by Judy 7 · 0⤊ 1⤋
This late in the year unless you are going to make over 4,000 you would be okay to check exempt. Don't forget to turn in a new W-4 in January putting yourself down as zero or one.
2006-10-23 10:47:35 · answer #2 · answered by acmeraven 7 · 0⤊ 0⤋
I don't think you are exempt on line 7.
How are you assuming you will have no tax liability on what you are making now?
2006-10-22 11:43:40 · answer #3 · answered by T H 4 · 0⤊ 0⤋