Last year I received back all of the money that was withheld for taxes from my job. Can I claim exemption this year. I have never had to pay taxes and this year should be the same but I am nervous about it . Can someone explain it to me and let me know if I am eligible?
2007-02-28 02:18:52 · 3 answers · asked by Reinna M 1 in Business & Finance ➔ Taxes ➔ United States
To empower you, I will give you...www.irs.gov, individual, withholding calculator. This will give you a completed w-4 that should answer that question for you.
good luck & bless
2007-02-28 03:16:30 · answer #1 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 1⤋
The rules for claiming exemption on the W-4 state that you must meet two requirements:
1) Last year I had a right to a refund of all federal income tax withheld because I had no tax liability
2) This year I expect a refund of all federal income tax withheld because I expect to have no tax liability.
There is also this 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.
It sounds like you meet both #1 and #2. The note should only apply if you are, for example, a teenager and your parents plan to claim you as a dependent. If your parents will not be claiming you as a dependent or you expect less than $300 in interest and dividends, you should be OK to claim exemption.
2007-02-28 02:34:23 · answer #2 · answered by Dave W 6 · 0⤊ 0⤋
If you got everything back last year, and don't expect this year to be any different, then yes you can. But if something changes during the year, be sure to file a new W-4 so you won't end up owing.
2007-02-28 08:32:17 · answer #3 · answered by Judy 7 · 0⤊ 0⤋