I work part time in retail, and whenever any of us are about to pull a big paycheck like a full 80 hour pay period plus vacation time we go Tax exempt to get the most out of the paycheck. Now thats exactly what i did, except the week after i got my big check when i went to put my tax status to no longer exempt it didnt go through for whatever reason. Now at the time i got the big check at in the beginning of august my NET pay was 4000$, and since then ive made another 5000$ but i havent paid a single tax dollar on it. I need to know if ill owe money to the IRS during tax time and if possible how much. I live in Pennsylvania and i have NO tax liabilities i always get my full tax refund if that helps. Thank you so much in advance, this is the first time ive ever messed up like this since i started working (im 21, been working ever since i turned 17) and its freaking me out.
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Dependent of another taxpayer for the 2013 tax year your standard deduction amount is 6100 of EARNED income that you did have to work for to earn during the 2013 tax year that will be FREE of the federal income tax amount during the 2014 tax filing season for the 2013 tax year,
So your first marginal tax rate bracket amount will be 10% FIT on the amount that is over 6100 during the 2014 tax filing season for your 2013 FIT return at that time.
Yes chances are that you will owe some amount of taxes at that time in your life.
It is illegal to claim to be exempt from the federal income tax withholding amounts when you really are NOT qualified to do so during the tax year.
21 still going to school full time for any 5 month period during the 2013 tax year and living at home with your parents except for the temporary absence while away attending school during the tax year and NOT furnishing MORE than 50% of your own support using the worksheet that is available in the Publication 501 at the www.irs.gov website for this purposing the search box for that purpose.
Publication 501, Exemptions, Standard Deduction, and Filing Information
http://www.irs.gov/pub/irs-pdf/p501.pdf
Hope that you find the above enclosed information useful. 12/04/2013
It's illegal to ever go tax exempt if you are not. Even for one pay period.
You will owe if you are a dependent, or if not and your income ends up over about $10,000, and if you owe less than $1000 and pay in full, no penalty.
If you can claim Exempt on your W-4 for 1 paycheck in a year, you can claim it all year, since claiming exempt says that you will not owe ANY tax for the year. In other words it was illegal to claim exempt for the 1 check.
Accidentally???
If you've made just $9000 you're OK so far, assuming you aren't a dependent. You can make up to $10,000 and not owe any tax. If you make more than that, you'd owe 10% of the amount over 10,000
You do know that changing your status on the W4 doesn't change anything on your year-end 1040 tax return, right?
You are NEVER "tax exempt".
Your total gross income, minus your allowable deductions and credits = your tax liability.
If your tax liability is more than the total federal income tax withheld for the year, you will owe money.
GO to the IRS website - IRS.GOV.
READ the entire 1040 form, and its instructions.
And grow the hell up.
for 2013 your non taxable income is $10K if you are single without dependents
you have your last pay stub to see your year to date amounts
you know that the excess of the $10K will be taxable and the lowest rate being 10% which increases as the excess increases