Individuals may be able to mark Form W-4 as "exempt" under certain circumstances, according to the Internal Revenue Service. The taxpayer has to have had a refund of all income tax withheld the previous year and has to reasonably expect a full refund of all current year withholding.
Students and retirees with part-time jobs are not automatically exempt from income tax withholding. A number of factors are taken into consideration, including filing status, dependency status and whether the taxpayer itemizes deductions. A taxpayer who is exempt from withholding may still have to file an income tax return, the IRS notes. A complete discussion and helpful chart can be found in IRS Publication 505.Learn More
Form W-4 is a form that is filled out by an employee and authorizes an employer to withhold the correct amount of federal income tax from an employee's pay. This form can be downloaded from the IRS website.Full Answer >
What should be claimed on a W-4 withholding form depends on the taxpayer's overall tax situation. Claiming one exemption or dependent results in a little less tax withholding than claiming zero. The IRS provides a W-4 calculator on its official website to assist taxpayers in making this decision.Full Answer >
A form 1040 is a form issued by the Internal Revenue Service that is filled out by taxpayers to reveal their financial income information. This form is utilized to determine how much tax is owed or refunded. It is due annually on April 15th.Full Answer >
As a general rule of the Internal Revenue Service, a W2 form must be provided to an employee no later than Jan. 31 for the preceding year. A former employee is provided a W2 on that date as well, unless that individual requests to receive it earlier. Typically, such a request comes when a person is terminated.Full Answer >