Income Tax ~ Exemption problem?

Question

When I originally interviewed for my current job, I didn't mark myself as exempt on my W-4 form. I later found out I was indeed tax exempt, and refiled through my job; however, upon recieving my paycheck today, I find that my check has indeed been gutted by federal income taxes. I complain to payroll, only for them to tell me "We will fix it for next week, but there is nothing we can do about this week's check." With that said,

1) Is there really nothing payroll can do? Is the idea that they already sent the money to the government and so they truly cant adjust the income tax out of my check, or do I just have a lazy bum for a payroll chief?

2) If indeed I can't work it out with my job, how do I get the lost income tax money back in the fastest possible way?

It was 150$, which is plenty for a college student.

Answer 1

I have done payroll for over 15 years and this is what I can tell you. Depending on the amount of tax withheld a company deposits the taxes weekly, bimonthly, or monthly with a federal depository such as the Bank of America. The IRS has no idea of the breakdown of the money until the W2s are filed by the company at the end of the year. They may also report it to the state more frequently. They can therefore technically adjust their payroll and give the money back. They just deposit less the next period. It just may be that their payroll can't handle that type of transaction since it must be done manually. I do the work for a very small company and would have no problem.

If they can't give it back then your only recourse is to file for a refund next year. There is no way to get it from the IRS early since they have no record of you personally paying the money until they receive the W2s.

Answer 2

It can take a pay period or two for a W-4 change to catch up with the payroll system, depending on how it's done. There probably isn't anything they can really do about it once the check is paid. You'll get it back as a refund when you file your taxes - and yes, I realize that's a long time off. But if you make enough for the withholding to be a large amount, I'd question whether you really qualify to file your W-4 as "exempt". If you are talking $20 or so, what's the big deal? Hard to think of that as "gutting" your paycheck.

Followup: They took out $150 for income tax? Something is very wrong here - and I agree that $150 is huge to the average college student. What do you gross in a week? Even if the $150 is a combination of state and federal income taxes, and you live in the highest taxed state in the country, and your original W-4 had zero exemptions, that would indicate that you are making over $600 a week - and if you are, then you are almost certainly NOT exempt. Being a college student doesn't make you exempt.

No matter how you file your W-4, social security and medicare, totalling 7.65%, will still be taken out.

Answer 3

Look in your local phone book under U.S. Government for the Internal Revenue Service -Taxpayer Assistance Division.Find the nearest office to you and go in person with ID and your Social Security card.
These folks will not only look up your tax history but they will look into this matter,fill out the proper forms and get you your refund(if any) for FREE!

Answer 4

In all probability they can do nothing in Payroll. Call the IRS, and ask them, how to reclaim your deduction. They can advise you.