Last year when I got hired my work told me that I could go exempt for federal and state taxes, but it ended up now that I owe 1400 to the goverment, can I hold work at fault and make them pay it instead or something?
What are my options?
2007-02-01 10:17:55 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Ouch your work must have a bad accountant. Whenever I had questions about what to claim when I was younger, the accountants would always tell me they weren't legally able to tell me how to file. I doubt there is anything you can do legally unless you have it in writting and then it might even be hard to deal with. Have you said anything to this person who gave you the advice about it? What do they say.
2007-02-01 10:35:04 · answer #1 · answered by Anonymous · 0⤊ 1⤋
While your employer really shouldn't be telling you what your withholdings should be, it's not their fault that you didn't have the correct amount of taxes withheld. That is your responsibility. Your employer doesn't know what other earnings you have from other jobs or investments, what deductions you may have, how you filing, etc. You are the only person that knows this, and perhaps your tax advisor if you have one.
Your best option is to pay the $1400 tax and then adjust your withholdings for this year such that you have taxes withheld from your earnings. You may be able to set it up so you can pay in installments if you don't have the total $1400 at once--just be aware that the IRS will charge interest on unpaid portions.
2007-02-01 10:30:04 · answer #2 · answered by SwimsALot 2 · 1⤊ 0⤋
I don't know why they told you that - they could not possibly know that you're eligible to file as exempt since they wouldn't know what other income you had. But you are responsible both for the form and for your taxes. This instructions on the form are pretty clear, and you signed the form.
Exempt only means that you fill out your W-4 that way, and no income taxes are withheld from your checks. By doing that, you're stating that you didn't owe any income tax the previous year and don't expect to owe any this year. The form says that.
You owe now because you didn't have anything taken out. Otherwise you wouldn't have gotten as much as you did each pay period. So no, sorry, they aren't responsible to pay it, you are.
Your options are to pay it with your return, or to set up a payment plan with the IRS to pay it off over time, with interest.
2007-02-01 13:42:41 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
The short answer is that the tax bill is your responsibility, and you generally cannot hold your work liable.
The go exempt for taxes is genreally limited to individuals to have not had a tax liability in the past. You check the box, and you sign the W-4 granting permission to you workplace to manage your money in this fasion.
Remember, the W-4 is essentially a request to your employer to take a portion of your money from your paycheck and give it to the government in your name. It is not the employer's money, and they get no benefit for the service.
I suggest you consider taking a payment plan option.
2007-02-01 10:28:17 · answer #4 · answered by tax_black_belt 2 · 1⤊ 0⤋
If they didn't put anything in writing, you're stuck. Talk to the IRS about how you're going to repay it instead of how it's not your fault; they're likely to give you time to pay it back and might even lower the fine if you're cooperative with them.
2007-02-01 10:24:38 · answer #5 · answered by John 4 · 0⤊ 1⤋