What does it mean to claim "exempt" on your W-4?
About the allowances you should claim on W4: http://taxipay.blogspot.com/2008/02/filing-w4-employees-withholding.html
by Jss - 5 hours ago
The exempt status is usually only used by full time students such as high school students with a summer job. If you earn over $900 for 2008 or if someone else can claim you as a dependent on their income tax return. you cannot claim exempt. With the exempt status, they take no federal or state withholding from your check. Social Security and Medicare come out no matter what you put. If you complete the form incorrectly, you can end up owing and be penalized for under-withholding. I would complete a new W4 asap, if you filled out the first one incorrectly. For more info visit www.irs.gov.
by taxrep4u - 5 hours ago
If you indicate that you are exempt, your employer will not withhold any federal income taxes from your check. Legally, employers are not allowed to instruct you on how to complete your W-4 since the information can be considered discriminatory. However, if your parents are claiming you as a dependent it is entirely possible that you will not be responsible for paying federal income tax. If you end up filing separately at the end of the year you may be responsible for paying for your income taxes in one lump sum. Also, even though you are indicating that you are exempt from federal income taxes, you will still be responsible for Social Security and Medicare taxes. Your employer will withhold these from your check no matter what you indicate on your W-4.
by amandaztoy - 5 hours ago
It means that you are declaring that you are exempt from income tax withholding. You were told wrong by Target.
by bud68 - 5 hours ago
Exempt on a W-4 means that they will withhold no federal income tax from your wages. Depending on your circumtstances this may be perfectly okay. Single, married, children; all have a bearing and everybodys tax situation is different. If you are under 65 and single you can make 7,900 and owe no federal income tax; and if over age 25 you will receive EIC. If you want to let me know your particulars I will tell you exactly how much you can make without tax implication.
by acmeraven - 5 hours ago
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