can someone explain me both, tax exempt and no exempt?
2007-03-12 18:09:01 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Tax-exempt means that certain income is not subject to tax. For example, a federal tax refund is tax-exempt. You do not pay taxes on this. If a senior citizen's only income is social security benefits, these benefits are tax-exempt. They are not taxable.
2007-03-12 18:49:03 · answer #1 · answered by tma 6 · 0⤊ 0⤋
If you are talking about filing a W-4, claiming "exempt" tells your employer not to withhold any income tax from your check. You are swearing under penalty of perjury that you don't expect to have any tax liability for the year.
This does NOT exempt you from paying tax, just means nothing will be withheld so if you do owe, you'll have to pay it all in a lump at the end of the year, and might be subject to penalties also.
2007-03-13 16:02:03 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Tax exempt meaning , there is no tax to be paid on the item of purchase . Non tax exempt meaning that will be tax to be paid on the item of purchase .
2007-03-13 07:46:54 · answer #3 · answered by Gentleman 7 · 0⤊ 1⤋