A few points about claiming "EXEMPT".
1. Make sure you qualify. There's a big difference between no tax liability and getting a partial refund of taxes paid.
2. Why change back in the spring if you have zero tax liability?
3. EXEMPT status expires February 15 each year, so don't forget to file a new W4.
Here are the IRS qualifications for claiming EXEMPT status:
In rare instances, employees may be exempt from federal income taxes. You may claim an exemption only if both of the following circumstances apply to you:
• For the previous tax year, you received a refund of all federal income taxes withheld from your paycheck because you had no tax liability; and
• For the current tax year, you expect a refund of all federal income taxes because you have no tax liability.
Please note in order to claim exemption from income taxes on your W-4 form, you must not have paid any income taxes for the previous year and expect not to be liable for any income taxes this year. If you have merely received a refund of some of the taxes you withheld last year, this does not qualify for an exemption unless you paid zero taxes.
Re: Inhouse vs Contractor
Member #: 40737
Registered: 9/16/2005
Posted:
123
Name:
David Schreiber
Name:
David Schreiber
Company:
Total Facility Management
Occupation:
owner
Location:
Southern IL
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