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File exempt on W4, employer withheld anyways Nevada

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  • File exempt on W4, employer withheld anyways Nevada

    I always file exempt on my W4, yet my new employer withheld federal income taxes anyways. Anything I can do?

  • #2
    And you file as exempt because...?
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      because its easier to do all of my taxes and pay at the end of the year given the type of job I am in. Lots of driving, lots of business deductions, and giving the feds an interest free loan for a year never really made much sense to me.

      Been doing it this way since I started working 13 years ago.

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      • #4
        This is not my area of expertise, but it is my understanding that if someone files as exempt whom the employer knows does not qualify as exempt, they are required to take taxes anyway.

        I'm sure someone will tell me if I'm wrong.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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        • #5
          Thats what I thought too, but this is a new job and this was my first paycheck with them. No way of them knowing what my filing status would be.

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          • #6
            Not exactly. The only way you may without fraud claim exempt is if you had no tax liability last year and expect to have none this year. Not what you eventually OWE but no liability at all, after deductions and any tax credits. You sign the W-4 under penalty of perjury.

            Having said that, unless you stated to the employer that this was NOT the case, they should have accepted your W-4 if it was properly completed and processed it accordingly. The employer is not the W-4 police.

            Having said that, don't be surprised if you have underwithholding penalties when you file.
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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            • #7
              My deductions tend to be high enough that I never actually owe. I have only owed once, but that was in a different line of work about a decade ago.

              Did my current employer break any law by withholding something other than directed to by my W4?

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              • #8
                There is a diference between not owing any additional taxes beyond what was taken out of your salary (or receiving a refund of some of the taxes you have already paid) and being exempt which means you pay ZERO taxes to the government.

                The state of Georgia requiers me as the employer to accept only Exempt
                W-2's that I feel are valid.
                Thats a heavy burden on the employer IMHO.

                By the way, I have gotten 2 letters from the state and one from the federal govt challenging the Exempt status. (in the last 3 years).I was instructed in each to take out Single, zero until the employee could show proof of being exempt. NONE of those 3 wound up being exempt.

                If you look at the form you signed for withholding you are guilty of fraud if you state you owed no taxes the previous year when, you did in fact pay some taxes.
                I find that the harder I work, the more luck I seem to have.
                Thomas Jefferson

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                • #9
                  I didn't owe anything last year.

                  Kind of an odd situation, my wife is a dancer here in Vegas, so according to the IRS she has zero income. With my income being the only one on paper, it looks like we are pretty poor, so I havent owed since I began this line of work 5 years ago.

                  Did my employer violate any laws?

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                  • #10
                    Originally posted by antifeds View Post
                    Did my employer violate any laws?
                    Possibly, although arguably not any of the important laws. I have done payroll for a long time and am pretty familiar with the Internal Revenue Code laws related to employer obligations and withholding. The IRC penalties are all a function of underwithholding, not overwithholding.

                    I get the feeling that I am missing most of the story here. The employer does not have a dog in this hunt. As long as the form looks ok on it's face, I have never once worked for an employer who cared if the employee should be claiming Exempt or not. And in over 30 years and tens of thousands of W-4s, I have never had the IRS once come after the employer because we processed an Exempt W-4. I have never heard of this happening to any employer. IMO, the employer has a better chance getting hit by lightning. Worse case is that IRS would send us a lock-out letter. Those I have received, and that is the normal response from IRS when they do not like the withholding.

                    Has the employer actually told you why they are doing this? And if so, could you please tell us what they said?

                    If they just jerking you around because they can or because they are seriously confused, how about submitting a Married-99 W-4? Or Married (whatever-number) gives you what you are looking for?
                    "Reality is that which, when you stop believing in it, doesn't go away".
                    Philip K. **** (1928-1982)

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                    • #11
                      The little payroll guy said it "wasnt him, it was quickbooks that did it".

                      After I got done laughing, I asked him why he just didnt change what quickbooks did, and he said it was out of his hands. Thats just the way it was done.

                      I again asked him how quickbooks could take anything out since I put exempt down, and he said " thats just the way it came out".

                      Considering this is a new employer, that didnt exactly inspire a lot of confidence in me in the way this company operates.

                      I also asked if he could just issue me a check for the amount that was deducted, and he said that would never happen.

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                      • #12
                        OK. You have a payroll person and maybe an employer who do not have a clue what they are doing. Based on what you have said, the employer has no malice towards you or small-time sheriff posturing, they just are clueless. I can guarentee that QB is perfectly fine with an Exempt W-4. That is a variant of "the dog ate my homework" defense.

                        Try submitting a Married-99 or some type of W4 that your employer will process. You can try to getting in a fight with them, but the only likely outcome is that you would be fired. If you get it right on a go-forward basis, then you can at least limit the damage.
                        "Reality is that which, when you stop believing in it, doesn't go away".
                        Philip K. **** (1928-1982)

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                        • #13
                          [QUOTE]
                          Originally posted by antifeds View Post
                          The little payroll guy said it "wasnt him, it was quickbooks that did it".
                          Ask him to play with it. It is possible to enter "exempt"

                          Just do not count on getting the tax money withheald back untill you file. It took six weeks for my former employer to figure out how to fix that glitch in the program.
                          Last edited by GotSmart; 08-01-2008, 02:00 PM.

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                          • #14
                            Originally posted by antifeds View Post
                            I didn't owe anything last year.

                            Kind of an odd situation, my wife is a dancer here in Vegas, so according to the IRS she has zero income. With my income being the only one on paper, it looks like we are pretty poor, so I havent owed since I began this line of work 5 years ago.

                            Did my employer violate any laws?
                            To reiterate not owing and not having a liability are two different things. The liability occurs on your 1040 before you apply any withholding or estimated tax payments. THIS is what must be zero in order to claim exempt.

                            Secondly, I'm assuming your wife is an independent contractor. She should be getting a 1099-MISC form if she earns $600 or more in the year. And even if she doesn't, you are required to claim her income on your Married-filing jointly 1040. Not doing so is also fraud.
                            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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                            • #15
                              Originally posted by antifeds View Post
                              I didn't owe anything last year.

                              Kind of an odd situation, my wife is a dancer here in Vegas, so according to the IRS she has zero income. With my income being the only one on paper, it looks like we are pretty poor, so I havent owed since I began this line of work 5 years ago.

                              Did my employer violate any laws?
                              Then you and your wife are both committing tax fraud by not including her self employment income from dancing on your tax return. There may not be any entity reporting her income to the IRS, but its sure as heck taxable income that is required to be reported.

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