hi im a single male i make 40,000 a year i want to claim "exempt" on my employee tax sheet starting next year

Question

i have no dependants, how much will i end up oweing at the end of the year?

Answer 1

Well. before you do that...I should tell you that the IRS has a new program that is targeting people that under withhold taxes.

If you will look at the new W-4 form there isn't a space for exempt.

Although you might get away with it for a year or so...they will force you start withholding at the correct amount.

And, this doesn't even begin to address the penalties for not having enough withheld.

I hope this helps

Answer 2

Try this: Want in one hand and pee in the other and see which one gets wet first.

To find out how much this will cost you, take your total tax line from last years return and add about 25% for fines and penalties for underpayment of tax. Then add another $500 for filing a fraudulent Form W-4. That's about what you will owe.

With that much income, assuming that you take the standard deduction, your tax liability would be $4,296.25. Add 25% (guesstimated) for penalties ($1,074.00) and interest for underpayment of taxes plus that $500 for the fraudulent W-4 for a grand total of $5,870.25.

Legally you can only claim EXEMPT on Form W-4 if you had $0 tax liability the prior year and reasonably expect to have $0 tax liability for the current year. This is clearly not the case in your situation so it will cost you an extra $1,500 or so in penalties and interest for the "privilege" of cheating the system. Personally I can think of better things to spend my money on such as booze and women... In the end, it's your call though.

Answer 3

In the current W4 form, you sign the statement:
Under penalties of perjury, I declare that I have examined this certificate and to the best of my knowledge and belief, it is true, correct, and complete.

You Single with no dependent, on an income of $40,000 in 2007 the federal tax is around $4,200 and then there may be state tax. You will certainly invite a good amount of interest and penalty.

Answer 4

Sorry you are not eligible. The "exempt" portion of the W4 form is intended for low earners such as students working in the summer, retired persons, and other part-time workers. Basically, if you had no income tax liability in 2007 and expect none for 2008, you may be exempt from income tax withholdings on your 2008 wages. Referring to the 2006 tax tables and based on your 40k wages, your federal tax liability would be $4,451

Answer 5

You can't legally file as "exempt" with that kind of income unless you have deductions and allowances that will take your tax to zero for the year, and can and probably will be fined if you do it anyway.

Your federal tax for the year will be around $4300. Penalties and fines would add to that.