You might get penalized the first year, if you claim exempt and aren't entitled to. It would probably depend on how much you owe - if you just owed a minimal amount (under $100) you probably wouldn't be penalized, even if you claimed exempt illegally. If you owed over a thousand dollars, you'd probably be penalized the first year.
2007-04-02 02:39:56
·
answer #1
·
answered by Judy 7
·
0⤊
0⤋
As long as you have zero tax liability. If you owe ANY tax at all, you are not entitled to claim EXEMPT on your Form W-4. As a general rule, if you are a single taxpayer and cannot be claimed as a dependent by another taxpayer and earn more than $8,450 (2006 rules, 2007 is a bit higher) you can no longer claim EXEMPT.
2007-04-02 01:06:33
·
answer #2
·
answered by Bostonian In MO 7
·
2⤊
0⤋
Just to add to Bostonian and Judy, if the IRS see no taxes were deducted and you have a large liability, they may send your employer a "lock-in" letter stating what your W-4 should be (ie: Single and 1) and you will not be able to change it without IRS approval.
2007-04-02 04:52:53
·
answer #3
·
answered by Mom of 2 4
·
0⤊
0⤋