I claim exempt for 3 months, will I get penalized?

Question

I claim 4 in my W2, and I just changed it to exempt. But will I get penalized for it? And how long can you claim exempt?

Answer 1

It depends on whether you will end up owing at the end of the year when you file your tax, and if so, how much.  If you owe $1000 or more, you might have to pay penalties in addition to what you owe.  

It is illegal to claim exempt at all if you expect to have ANY income tax liability for that year, or if you did for the year before, and you can be fined for claiming exempt when you aren't.

Answer 2

You should read this about the allowances you should claim on W4:

http://taxipay.blogspot.com/2008/02/fili...