one of my boyfriends Employees is telling him that he wants to file for exemption on his taxes. His employee is 52 yrs old and claims he qualifies to claim exemption.
What are the qualifications for this in Michigan?
Anyone know? Any websites you can recommend. I need this problem solved quickly thanks!
2007-10-30 04:14:45 · 6 answers · asked by mmcchic23 1 in Business & Finance ➔ Taxes ➔ United States
It's not the responsibility of your boyfriend to determain the qualifications of exemption of an employee. That is the responsibility of the employee, and ultimately his as s if he does it wrong.
2007-10-30 04:23:22 · answer #1 · answered by Anonymous · 0⤊ 1⤋
What state you are in is immaterial for Federal tax purposes.
All the answers so far are wrong; an employer does have a requirement to report employees who claim exempt or more than 9 w/h allowances. IRS can penalize the employee if he ddoes this and owes on his 1040 that year.
The conditions to claim exempt are right on form W-4: one must have had zero tax liability in the previous year and expects to have no tax liability in the current year.
See link below for form W-4.
Good luck!
2007-11-02 19:57:13 · answer #2 · answered by Hank Roitman, EA 4 · 0⤊ 0⤋
How much does the employee make? The only legal way to claim "Exempt" is if that he had no tax liability last year and expects to have none this year.
My gut tells me that he may have hired a "Tax Protester". In the past couple of years, Michigan has become a hotbead of Tax Protester activity thanks to a gentleman named Peter Hendrickson and his book "Cracking the Code". Mr. Hendrickson recently lost his court case with the Feds. but many of his followers still worship him.
If the employee starts talking about "Cracking the Code", "Federally Priviledged Activity" or "Outside the District of Columbia", then he is a Tax Protester. This employee will continue to be a pain the *** forever. Your boyfriend will need to find a way to get rid of him.
2007-10-30 04:24:24 · answer #3 · answered by Wayne Z 7 · 0⤊ 1⤋
It is the employee's responsibility to pay his taxes. He can claim anything he wants. At the end of the year, Uncle Sam is going to come after the employee to get the taxes. If your boyfriend is concerned that the employee is trying to evade taxes, he can request proof that the employee will not owe any taxes. If this employee receives EIC at the end of the year, it is possible that his tax liability is $0.
This page may help. http://www.irs.gov/individuals/article/0,,id=139412,00.html
2007-10-30 04:34:16 · answer #4 · answered by Gypsy Girl 7 · 0⤊ 1⤋
Inrespect of Tamilnadu State,India the salestax exemption certificate is to be issued by The Government based on this the Commissioner of Commercial Taxes,Tamilnadu is empowered to issue the certificate.First one has to address the Commissioner who will authorise the respective assessing officer to issue the certifixcate if exemption has already been granted by Govt. otherwise address The Secretary,Commercial Taxes,TN.Govt.
2016-04-11 02:41:10 · answer #5 · answered by ? 4 · 0⤊ 0⤋
It may be true only if your boyfriend has already paid enough taxes for the year 2007. This can happen if he has 0 allowances on W4.
2007-10-30 05:07:11 · answer #6 · answered by MukatA 6 · 0⤊ 1⤋