Can anyone let me know what question means?
I claim exemption from withholding for the current taxable year, and certify that I meet BOTH of the following conditions for exemption: Last year I had a right to a refund of ALL Federal income tax withheld because I had NO tax liability; AND this year I expect a refund of ALL Federal income tax withheld because I expect to have NO tax liability.
A) I meet the conditions
B) I do not meet the conditions
2006-10-23 13:34:44 · 7 answers · asked by sparksXT 3 in Business & Finance ➔ Taxes ➔ United States
What would make me chooose (A) or (B)?
I'm real confused of what i should put.
2006-10-23 13:41:02 · update #1
It appears that this statement is similar to question 7 on IRS form W-4. If one meets these conditions they can request that they are not subject to withholding from their wages. Generally this applies to folks with rather small income from wages and their total taxable income does not subject them to tax liability. If that is true any withholding would be refunded so there is no point of sending it to the government so they can send it back at the end of the year.
2006-10-23 13:54:53 · answer #1 · answered by ? 6 · 0⤊ 0⤋
Look at your 2005 tax return. If you had no tax liability and received all the tax withheld in your refund that is one part. Look at your total income for 2006 and see if you will have any tax liability. If you don't then you meet the conditions and can so state on your form W-4 for withholding purposes.
2006-10-24 04:28:19 · answer #2 · answered by acmeraven 7 · 1⤊ 0⤋
This simply means that I paid no tax last year and will pay no tax this year. You must meet both to have no federal income tax withheld from your paychecks. If either you paid some tax last year, even if you got a refund you did not get everything back; or if you income has gone up this year and you think you will pay some tax this year you cannot be exempt.
2006-10-23 13:38:16 · answer #3 · answered by irongrama 6 · 0⤊ 0⤋
If you got everything back that was withheld last year and expect the same this year, answer A. This should exempt you from withholding. Don't count social security or unemployment tax, those are always withheld and you never get them back.
Even if you are exempt from income tax withholding, you will still pay social security and unemployment taxes.
2006-10-23 14:37:23 · answer #4 · answered by TaxGuru 4 · 1⤊ 0⤋
maximum returns are instantly processed and the refunds get out speedier. the faster you placed up a tax return, the speedier you get a reimbursement through fact maximum folk wait till the final minute after which the IRS gets slowed down. Amended returns are processed in my opinion and get closer scrutiny, so it takes plenty longer, plus the actuality that it seems such as you will have sent it in close to the time cut back, or close to between the time limits for extensions. success of the draw, i think. humorous how briskly they're to go while they choose money, yet giving it returned is yet another tale.
2016-12-28 03:08:56 · answer #5 · answered by Anonymous · 0⤊ 0⤋
A) meet all the conditions
2006-10-23 13:42:50 · answer #6 · answered by worldstiti 7 · 0⤊ 1⤋
Do you live on Drury Lane?
2006-10-24 02:24:35 · answer #7 · answered by jinenglish68 5 · 0⤊ 0⤋