I clamed exempt on my W-4 and I got taxed on my last paycheck?

Question

So since I am a graduate student and I am only making like 10k over the year, of which 5000+ goes to school, I am claiming exempt on my W-4. I got taxed on my last paycheck though, which makes me think there is a clerical error somewhere or there is some rule that I get taxed on paychecks over 1000 dollars... anyone?

Answer 1

Ask your employer.  It'll all even out anyway when you file your return.

Answer 2

Social security and medicare will be deducted no matter what you put on your W-4.  Also, if that paycheck was a bonus it might have been taxed at a flat rate rather than according to your W-4.

I assume that you are NOT a dependent.  If you are a dependent, then you probably are not exempt.

Answer 3

FICA and Medicare will virtually always be withheld even if you file your W-4 as EXEMPT.

One caution though.  You say that you expect to earn $10k.  If that's the case and you are Single and have no dependents, you WILL have SOME tax liability and therefore you may NOT file an EXEMPT W-4 with your employer.  

If you claim EXEMPT from withholding and wind up with any tax liability when you file, the IRS can get rather nasty.  There's an administrative penalty of $500 for filing a fraudulent W-4.  Also they can issue a "Lock Letter" to your employer directing withholding at a level determined by the IRS regardless of what you are legally entitled to claim.  If you only owe a few dollars they probably won't press the issue, but if you owe several hundred when you file they may hit you with the penalty and the Lock Letter.

Answer 4

You should be paying a little taxes so you do not owe at the end of the year.