the w4 form, (about withholdings)?

Question

http://www.irs.gov/pub/irs-pdf/fw4.pdf#search='w4%20form'

i got my first job this month. When i filled out the form oct 6, I put "EXEMPT" on line 7, now i'm worried, should I have left it blank? Will i get in trouble with the IRS?

i'm single
live with parents
i have no kids
mom claims me as a dependant
I will be make like a total of $1,500 this year.

when i filled out the form on oct 6, i put "EXEMPT" on line 7, now i'm worried, should I have left it blank?

Answer 1

u can change your w-4 anytime. companies r required 2 have current year w-4s every year by Jan 31st 4 all employees. by classifying yourself as 'exempt' just means uncle sam will not take any taxes. your parents r claiming u and u wouldnt owe any tax anyway. IF u had filed '0' exemptions, depending on your hourly/weekly wage, taxes prob would not have been taken out anyway. check your pay stubs, if u're in a taxing state, u prob dont have anything taken out 4 state either. the only taxes u should be paying r social security @ 6.2% and medicare @ 1.45%. in 2007, drop the 'exempt' and go w/'0' exemptions.

Answer 2

If you do not have more than $300 in unearned income (interest and stuff like that) you will not be required to file until you total income exceeds $5,150. Therefore no one other than the millions of Yahoo users will ever know. I don't believe the following note from the form W-4 applies to you because of the word "and" between the $850 / includes.

Note. 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.

Answer 3

You are okay as long as you do not make more than $1,750.
This is based on this year's tax information next year's might go up (maybe). I have not started reading this tax season information yet. I alway like to get through the holidays first.
Your parent needs to claim your exemption for Year 2006.
You should change your W-4 after January 1 and before February 14.

Answer 4

Baby girl.......you didn't read the directions very well:

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.

You are allowed to change your W-4 only once per year.....change it in January!

Answer 5

jd28spot is wrong about changing your W-4, the IRS will allow you to change it every pay period. Your employer will probably complain if you change it that often, but it is perfectly legal. My employer allows changes to be made 'on-line' though the companies network. I know people who change theirs monthly.

Answer 6

You'll be fine. $1,500 isn't a lot of money at all so you'll probably not even pay any taxes on it.