w-2 form, question on exempt?

Question

im single. and have 1 allowance. if i file exempt for federal, doesnt that mean they wont take out any taxes, or will they take out alot. I JUST want my whole check without anything taken out.

Answer 1

On your W-4 form, not W-2, if you put exempt, you are stating that you expect to have no tax liability this year. If that is not the case, you could be hit with penalties for not having enough taxes withheld from your paycheck.

Believe me when I tell you that is not worth the hassle.

To come as close to not getting a refund or owing, you should claim one exemption for every $3500 in planned deductions.

Answer 2

Exempt means that you didn't have ANY tax liability last year, and won't have any this year. It's possible that you do meet that, depending on your income - if you do, just claim exempt and don't enter the allowances. Allowances are meaningless if you are exempt, that's all the online program is telling you - so I'm a little confused why your tax guy would tell you to claim exempt and to claim 5 allowances - you don't do both.. If your tax guy said you should be able to claim exempt, then do it, just don't enter anything for allowances. If you make under around $43,000 you should be safe claiming exempt. If you made over that, I'd stay away from exempt and claim the allowances, although you could claim more than 5, you should be good with at least 7, maybe more.

Answer 3

You aren't going to get your whole check with nothing taken out. Even if you filed exempt, they'd still take out 7.5% for social security and medicare.

If you file exempt, they wouldn't take out federal income tax. And if you make $8750 or less for the year, that wouldn't be any problem since you wouldn't owe income tax anyway. But if you make more than that, a number of unpleasant things will happen. First, when you file your tax return, you'll owe and be expected to pay then whatever tax you owe for the year. And if it's over $1000, you'll pay a penalty for underwithholding in addition to the tax you'd have paid anyway. And you can be fined for illegally claiming exempt - and it is illegal- notice above your signature where it says "under penalty of perjury,,," And the IRS will very likely send your employer what's called a lock-in letter telling them they have to take out as if you filed one allowance from then on, no matter what you put on your W-4.

Answer 4

You can't have your whole paycheck. It doesn't work that way. All wages are subject to Social Security and Medicare taxes at a combined rate of 7.65%. There is no way around that. Even if you are entitled to claim EXEMPT, those taxes WILL be withheld.

Now, to claim EXEMPT on Form W-4 you must meet 2 conditions. You must have had $0 tax liability the prior tax year AND received a refund of all income taxes withheld and you must expect to have $0 tax liability for the current tax year. Additionally if you can be claimed as a dependent by another taxpayer, your income may not exceed $300 for the entire year.

Most taxpayers are not eligible to claim EXEMPT. And if you do improperly you may be subject to a penalty of $500 for filing a fraudulent Form W-4. On top of that, the IRS will probably issue a Lock Letter to your employer, directing them to withhold at a rate specified by the IRS, normally Single and 0 regardless of what you might otherwise be legally entitled to. On top of all that, you'd STILL have to pay whatever tax was due on the income you earned when you filed your tax return, plus penalties and interest for underpayment of tax.

Answer 5

There is nothing you can file to have your whole check with nothing taken out.

Even if you change your W-4 to exempt, your company will still withhold 7.65% for FICA/SS/Med, they have to.

And the above answerer is correct, if you underwithhold your federal taxes, not only will you have to pay the tax, you will end up paying penalties too.

Answer 6

You have to apply with the W2 form and get all that money they deducted at the end of the year. its like getting an extra paycheck per year. but no, you cant just get all your checks without deductions.