It will all wash out at the end - you WILL owe something or your refund will be smaller. Try to find things to deduct - moving expenses, health insurance, children, housing, etc.
Give to you 401K the max before the end of the year.
2007-12-03 17:12:40
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answer #1
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answered by Beau 6
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You can NOT claim EXEMPT unless you meet the requirements spelled out in the instructions on Form W-4.
1. You must have had $0 tax liability for the prior tax year and received a refund of ALL income taxes withheld.
2. You must reasonably expect to have $0 tax liability this year.
Filing EXEMPT under any other circumstances constitutes filing a fraudulent Form W-4. If you're caught out on this, the IRS can levy a $500 administrative penalty. They can also issue a "Lock Letter" to your employer directing how taxes will be withheld in the future without regard to what you put on your W-4.
If you have reviewed your tax situation and discovered that too much tax has already been withheld it is perfectly acceptable to increase the number of withholding allowances to reduce the amount of tax being withheld. That's perfectly legal. There's no limit to the number of allowances you can claim as long as you can justify your claim if it is questioned. Just do NOT claim EXEMPT unless you meet the above criteria. And don't forget to file a new W-4 right after the New Year to make sure that the proper amount of tax is withheld starting in January.
2007-12-04 06:46:17
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answer #2
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answered by Bostonian In MO 7
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It could, depending on what you claimed the rest of the year. If you were close already, you could end up paying. If you would otherwise have gotten a decent refund, it will just be smaller.
If you claimed exempt for 7 months you would probably have to pay quite a bit when you filed.
And by the way, if you expect to have any tax liability, you are NOT allowed to file exempt. But you could get away with it for a month if you've overpaid during the other months.
2007-12-04 09:10:01
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answer #3
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answered by Judy 7
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1. It depends upon your filing status and your total income.
2. You can claim exemption from withholding if you are not dependent and, if
*Last year you had a right to a refund of all federal income tax withheld because you had no tax liability and
*This year you expect a refund of all federal income tax withheld because you expect to have no tax liability.
3. If you can't claim exempt, it is better to increase you allowances on W4 instead of claiming exempt of W4.
4. Claiming exempt means that employer will not withhold any income taxes from your paycheck. When you file your tax return, and if you owe taxes, you may have to pay interest and penalty.
2007-12-04 01:43:10
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answer #4
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answered by MukatA 6
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First of all, why are you claiming an exemption. Is it for school purposes or age?
If you are doing it just because you need a little extra money, I would not do it. It will affect your refund if you are expecting one.
If you have more information about why you want to do this, please e-mail me and I will do my best to answer whatever questions you might have.
2007-12-04 01:30:59
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answer #5
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answered by pitbull1969 5
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fill out a new w-4 with more dependents so they don't withhold fit. Then fill out a new w-4 the next month.
2007-12-04 12:49:17
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answer #6
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answered by Anonymous
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Just tell them not to take tax out this month
that is all you have to do and it want hurt
taxes at all.
2007-12-04 01:32:27
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answer #7
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answered by deserthawk 3
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just the amount of your refund(it will be a lot lower)
2007-12-04 01:12:19
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answer #8
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answered by Anonymous
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