should i have filed exempt on w4?

Question

I filed exempt on the w4. Should i change that info?


7.20 per hour /bi weekly pay/single /mom files me as a dependant


if i make $342, i get taxed $57. Will changing my exempt staus make the gov take less taxes out of my check.

Answer 1

From the information you have provided, you cannot claim EXEMPT from withholding on your Form W-4.

You may only file as EXEMPT if you had zero tax liability for the prior year AND expect to have zero liability this year. The limit for wages for 2007 is $5,350 since you can be claimed as a dependent. If you expect to earn more than that, you cannot file EXEMPT on your Form W-4. If you are grossing $342 every 2 weeks, your income for the year will be around $8,900. That's WAY too much to claim EXEMPT.

If you did claim EXEMPT, you need to change it back quickly. Since you are claimed as a dependent you should probably be claiming 0 on your W-4 or you may wind up owning at tax time next year.

Answer 2

If the $342 is one bi-weekly check, no you can't file exempt, since you WILL have tax liability at the end of the year. I'm guessing that not all of that $57 is for federal income tax withholding - it probably includes other taxes like social security, medicare and maybe state and local taxes.

Do not file exempt. It isn't legal for you to do so, and you could end up paying a fine if you do, plus owing at tax time.

Answer 3

You have to pay your taxes, sooner or later. You may be a dependent but you must still file your own 1040.

Yes you can change your W-4 so they withhold less. That just means you'll have less refund (or more tax bill) at the end of the year when you do your 1040.

Here's the trick. It's ILLEGAL to owe a lot of money at the end of the year! You must pay your taxes as you earn them throughout the year. The easy way is paycheck withholding. Feel sorry for self-employed, who have to use this method: http://www.irs.gov/faqs/faq9-3.html

The bottom line is, you must pay your taxes as you earn the money. That means you'll get a refund, or owe very little, when you do your 1040 at the end of the year.

So messing with W-4s is dangerous unless you really know what you're doing.

For instance say you haven't worked all year and you get hired in November. A person working all year will owe a LOT more taxes than a person working 2 months. If you don't change your W-4, they'll withhold assuming you worked all year (for another company). So in that case, you'd change your W-4 for more exemptions. The IRS has formulas for that, to help you.

Answer 4

you could truthfully document. when you consider which you have filed exempt, your employer won't withhold federal earnings tax out of your examine, yet you need to nevertheless be eligible for tax credit. examine into the Earned earnings credit - you need to get something back for that when you consider which you have a toddler.