i do not have federal and state taxes taken out of my check only fica,?

Question

on a w-4 form there is a section that says( if i filed taxes last year and was eligible for a refund because i didnt owe any taxes and if i plan on filing this year and expect a refund) write EXEMPT on the line. so i wrote exempt on the line cause i figured that pertained to me. could that be the reason why i have no taxes taken out

Answer 1

Yes, that would be the reason. What is your expected total income for 2007? That and your filing status will determine how much tax you will owe.

Answer 2

That isn't what the form says. This is what it says:

I claim exemption from withholding for 2007, and I certify that I meet BOTH of the following conditions for exemption.
* Last year I had a right to a refund of ALL federal income tax withheld because I had NO tax liability and
* This year I expect a refund of ALL federal income tax withheld because I expect to have NO tax liability.

Please re-read those statements CAREFULLY. There are other instructions near the top of the form that also stipulate other requirements and restrictions on claiming EXEMPT.

Most folks can't claim exempt. If you improperly claimed EXEMPT you WILL owe when you file this year. There is also a possibility of a $500 penalty for improperly claiming EXEMPT as well.

You didn't mention how much money your earned or what your filing and dependency status were. Nor did you mention what the Total Tax line was on your tax return last year. Those are important pieces of information that are needed to know if you might be eligible to claim EXEMPT.

One last point. Claiming EXEMPT automatically expires in February for a W-4 filed in 2007. If you don't file a new W-4 with your employer by then they will automatically start withholding tax at the highest rate, Single and zero.

Answer 3

If you file your W-4 as exempt, they won't take out federal income tax and depending on your state, won't take out state income tax either.

If last year you not only got a refund, but got EVERYTHING back that you had paid in, and you expect the same this year, you're OK filing exempt. But if you got a refund but not as much as you paid in, then you are NOT exempt. There are penalties for filing your W-4 as exempt if you aren't. If with no taxes taken out, you do end up owing something, you'll have to pay it when you file your return and could face additional penalties. Read the instructions again - it doesn't just say if you plan on filing this year and expect a refund. From the way you word your question, I think you might have misunderstood the instructions.

Answer 4

dude, i made the same mistake a few years back. sorry but you will have to pay in.
talk to your H.R. and and have it fixed a.s.a.p.