Okay here's the situation, last year i made only 9,000 dollars and i didn't have to pay back, i got a refund of 800 bucks back on my income tax. This year i've been only working for 4 months, i put "EXEMPT" on my Federal and "EXEMPT" on my Minnesota State W-4 sheet, is that illegal? I heard you can only put "exempt" on your Federal W-4 only and not your State W-4 sheet. is that true?
2007-11-02 03:37:53 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Since you had tax liability last year, you aren't allowed legally to claim "exempt" this year for federal. But if you make under $8750 for the year ($5350 if you are a dependent) then it isn't going to hurt you, you won't owe anything.
I can't help re MN - I don't know the rules there.
2007-11-02 04:20:49 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
if you're 100% sure you won't owe any federal tax, you can claim exempt - unless the state had deductions that will reduce your taxable income to zero - you shouldn't claim exempt there - I'm not familiar with Minnesota state income tax
2007-11-02 11:01:49 · answer #2 · answered by Anonymous · 0⤊ 1⤋