He didn't get a federal tax return because they didn't hold anything...why didn't they hold any money?
2007-03-04 13:15:54 · 9 answers · asked by Direktor 5 in Business & Finance ➔ Taxes ➔ United States
You can opt for this when you fill out the tax forms when you start a new job. This is usually done if you dont expect to make enough money to make filing a tax return mandatory .He might have selected it accidentally. He should contact the IRS just in case he owes money.
2007-03-04 13:18:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Did he file a return?
It may be that he is claiming the appropriate number of exemptions on his w-4 form, which everyone fills out when they start a job and when their circumstances change, such as getting married or having kids, etc.
when he gets the W-2 at the end of the year to attach to his return, after doing his return he may have to PAY taxes.
Just because a person's W-2 doesn't show any Federal tax withheld doesn't mean they won't have a tax liability. Most people choose to have the withholding because it's easier to pay taxes based on your periodic payroll rather than getting a huge tax bill at the end of the year.
2007-03-04 21:22:02 · answer #2 · answered by vicarious_notion 3 · 0⤊ 0⤋
There are certain (few) instances where someone may not have to pay taxes on income. (Usually it has to do with the income level being less than a certain threshold, but the number changes every year.)
It could also be a simple error. When your friend filled out his paperwork when he started the job, if he checked the "Not subject to witholding" box on the W4 form, he could've created this himself. Or it could be an error made by the company.
He'll certainly want to do some investigating. The IRS doesn't play around.
2007-03-04 21:22:08 · answer #3 · answered by ISOintelligentlife 4 · 0⤊ 0⤋
Did he claim he was a student and therefore he might be exempt.
Or his weekly pay was so low that they did not with hold any thing. Otherwise he better get ready to pay big bucks. And file for an extension, but he will have to pay an estimated amount owed by the filing dead line.
2007-03-04 21:22:07 · answer #4 · answered by Aliz 6 · 0⤊ 0⤋
He may have filled his W-4 out with Exempt in box 7, at least I think it's box 7. If you claim exempt, then the government doesn't take the taxes. You should only claim exempt if you know for sure that you will not have to pay the taxes and would definitely get a refund back. Most of the time single parents claim this so they get more $$ in their weekly checks.
2007-03-04 21:20:33 · answer #5 · answered by Angela D 3 · 0⤊ 1⤋
He has to file his own return.
As for the W2, he probably claimed exempt on his W4, or he didn't make enough for them to withhold anything.
2007-03-04 21:18:55 · answer #6 · answered by Vegan 7 · 1⤊ 0⤋
They didn't withhold anything either because he filed a W-4 as exempt, or he made so little that nothing was to be taken out.
He should check with his employer to see what his withholding is set up as. He can file another W-4 if it's not what he wants it to be.
2007-03-04 21:22:29 · answer #7 · answered by Judy 7 · 1⤊ 0⤋
It could be that your friend's deductions were larger than what he made. By law even if there is nothing in the federal withholding he must file if he made at least $500.00.
2007-03-04 21:19:30 · answer #8 · answered by ? 5 · 0⤊ 0⤋
NO W4 I TAKE IT.....
HE BETTER GET FILLED OUT FOR 2007..
2007-03-04 21:18:52 · answer #9 · answered by cork 7 · 0⤊ 2⤋