Question on exemption from W-4?

Question

If I make $3,500 in the next 16 weeks, and never made any amount of money previously this year or anytime in my entire life, how do I tell whoever does the paychecks that my check should not have any earnings deducted due to income taxation?

Or do I have to wait until I file my W-4 as exempt?

And when do I do this?

Answer 1

IF you're making $3500 you are NOT necessarily exempt

assume you are a dependent of your parents

Your W-4 should be filed at the beginning of your work, and you shouldn't file exempt if you're NOT, penalties for so doing

Answer 2

Filing your W-4 as exempt IS how you tell them not to take out federal income tax.  You file that when you start work - they'll most likely give you a form to fill out in the first couple days you are there.  They'll still take out for social security and medicare, and depending on where you live, maybe for state and/or local taxes.

Answer 3

You may claim EXEMPT on Form W-4 if you meet the tests explained on the form itself, i.e. you had $0 tax liability in 2007 and reasonably expect to have $0 tax liability in 2008.  There are additional rules if you can be claimed as a dependent, as explained in the instructions at the top of the form.

Until you file Form W-4 with your employer they will withhold tax as if you filed a W-4 claiming Single and 0 allowances.  The law requires them to withhold that way without a W-4 on file.  You can file a W-4 with your employer at any time.

Bear in mind that even if you claim EXEMPT on Form W-4, FICA and Medicare taxes will always be withheld.  And also bear in mind that if you wind up with a tax liability at filing time, the IRS can get nasty about fraudulent claims of EXEMPT on Form W-4 so be SURE that you are legally eligible to claim that status!