I have two children and a non-working significant other in my home. I claimed exempt and did not change my exemptions back. I usually get anywhere from $3500 to $5000 back due to EITC and Child Tax Credit.
2007-12-27 10:05:27 · 2 answers · asked by awalton 1 in Business & Finance ➔ Taxes ➔ United States
Iwas wondering how much less will my refund be (approx.)?
2007-12-27 10:21:02 · update #1
It means you won't get any refund from withholding.
2007-12-27 10:09:46 · answer #1 · answered by Anonymous · 3⤊ 0⤋
Your 'refund' is the difference between what you had withheld and what you actually owe the IRS. Claiming exempt on your W-4 means you are telling your employer your tax liability will be ZERO and instructing them not to withhold ANY Federal income tax. That normally means there is nothing to refund. The EITC is considered a 'refundable' credit. That means it CAN result is a negative tax liability and result in a 'refund' of more than you had withheld.
The short answer is, your 'refund' will be less by the amount you would normally have withheld. You SHOULD actually OWE the IRS.
2007-12-27 11:08:55 · answer #2 · answered by STEVEN F 7 · 0⤊ 1⤋