Tax Question! This year I worked as a preschool teacher for a few months. While filling out my W4s I was unsure of whether I am "exempt" or not. Last year I was a waitress and made around 12,000 for the year.
I am single, and I have no children.
I do own a house with my boyfriend, but last year he filed the house under just him because he has a higher income and we are not married.
My question is: Number 7 on my W4 says "I claime exemption from withholding for 2007, and I certify that I meet both of the following conditions for exemption.. If you meet both exemptions write "exempt" here"
Am i exempt? I don't even know what that means? lol.
2007-12-12 02:15:59 · 6 answers · asked by ab 2 in Business & Finance ➔ Taxes ➔ United States
No you are not exempt. Last year you would have had tax liability, so whether you do or not this year, you are not allowed to file your W-4 as exempt because you don't meet the rules for no tax liability for last year.
Exempt means that nothing will be withheld, not that you are exempt from owing taxes.
2007-12-12 03:12:53 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
Go back and read the instructions for the W-4. Immediately under line 7 are 2 bullet statements. Read them. They tell you if you may claim EXEMPT or not. They say:
* 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.
Then it says:
If you meet both conditions, write “Exempt” here......>
Since you are single you certainly had some tax liability last year. Only a few dollars maybe, but you had some. That means that you are NOT eligible to claim EXEMPT for 2007.
2007-12-12 03:40:09 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
I'm pretty sure you have to have earned under only $5000 for the year to be exempt. You still get the general break that everyone gets, but unfortunately, being single and having no children usually hurts more than it helps, because most of the tax breaks are for married couples and people with children (dependents).
The easiest way to see if you are exempt is to just go through the previous steps and see if you fall under any ONE of those conditions. If so, then you are not exempt.
Best of luck!
2007-12-12 02:26:28 · answer #3 · answered by Kegger 3 · 0⤊ 1⤋
you are not exempt - that means you didn't make enough to owe any tax and making 12000 in a yr puts you over that limit - If you check that on your w-4, you won't get any taxes withheld and then you will owe the full taxes due plus under withholding penalty when you file your taxes - just file your w-4 as single and one exemption - you'll get a small refund
2007-12-12 02:33:23 · answer #4 · answered by Anonymous · 1⤊ 0⤋
You claim a tax exemption for yourself. You will have a standard deduction from your gross income as a single filer.
I think the deduction is $5,120.00 Check that out.
2007-12-12 02:23:09 · answer #5 · answered by ed 7 · 0⤊ 1⤋
You are not exempt.
You can go to the irs website: www.irs.gov
and search: exempt
You meet none of the qualifications.
2007-12-12 02:25:13 · answer #6 · answered by jwishz 7 · 0⤊ 0⤋