Q:
What is exemption from withholding?
A:
Quick Answer
An exemption from withholding is when someone has no tax income liability and is exempt from having income taxes withheld from her paycheck. The exemption is only for income taxes, so Social Security and Medicare taxes are still withheld.
Continue ReadingFull Answer
A person can claim an exemption from withholding if she had no income tax liability the previous tax year and she reasonably expects to have no income tax liability in the current tax year. If a person claims an exemption from withholding when she is not eligible, she must pay all of her income taxes when she files her return, and she may have to pay a penalty.
Learn more about Income TaxSources:
Related Questions
-
Q:
How do employers know the amount of taxes to withhold from a weekly paycheck?
A: Employers calculate the amount of taxes withheld from each paycheck by taking several factors into account, including the frequency of the payroll period, ... Full Answer >Filed Under: -
Q:
Are full-time students with a part-time income required to file taxes?
A: Status as a full-time student is not an exemption from paying federal taxes, states the IRS. Federal income tax liability is determined by the amount of ea... Full Answer >Filed Under: -
Q:
What percentage do they take out for taxes?
A: Income tax rates withheld from a paycheck range from 0 to 39.6 percent, as of 2014. The percentage taken out of a paycheck for taxes depends on the person'... Full Answer >Filed Under: -
Q:
What is federal tax withholding?
A: Federal tax withholding is an amount held from a regular employee's paycheck that goes toward his federal tax obligation. The amount an employer withholds ... Full Answer >Filed Under:
You May Also Like
-
Q:
Who qualifies as a dependent on your tax return?
-
Q:
Can you claim someone over 65 as a dependent for tax purposes?
-
Q:
What is the 2014 income tax bracket for filing as married, head of household?
-
Q:
Is a tax attorney needed if the IRS levies a tax lien against you?
-
Q:
Where does one file a 1040 form for 2014 taxes?
-
Q:
Does the IRS allow taxpayers to itemize their deductions?
