I think I am being illegally taxed...?
I am 15 and I live and work in Maryland. I claimed exempt on my W-4 form so I thought the only taxes that were allowed to be taken out of my paychecks were the social security taxes and the medicare taxes yet a few of my paychecks have all these taken out..... for a $242.90 total earnings before taxes i had these deductions... Federal Income Tax: $14.10 Employee Medicare: $3.52 Social Security Employee Tax: $15.06 MD State Income Tax: $8.80 Anne Arundel: $4.74 Total Taxes: $46.22 leaving me with a $196.68 check My most current check for $316.72 before taxes has these taken out... FICA: $24.23 FED WT: $21.48 MD ST: $19.04 Total: $64.75 Check after taxes: $251.97 is that legal? How do i fix it? other checks of mine only have social security and medicare taken out. thanks! I will not be making more than $5450 and my claim to being exempt are that I live with my parents I think. Anyways I am 15!
Public Comments
- I'm gonna guess that the problem started when you wrote "Exempt" on your W-4. Unless you provide a reason for being exempt, your employer is at liberty to ignore this, and withhold at the highest rate. Here's what to do: fill out a new W-4, and if you really expect that you will make less than $5450 this year, claim 4 exemptions. this should ensure that no funds are withheld for taxes. To get back the money already withheld, simply file a return next year. By the way, if you do make more that $5450, you may be liable for some tax, in which case you should have some withheld.
- Alternately if you have non-wage income (interest on college savings for example) of $300 or more, you also cannot claim exempt even if your wages are less than $5450. If you are paid biweekly, your w-4 has defaulted to single-0. Either they didn't process it or they chose to ignore it. If you income might go over $5450 (or there is the pesky interest income), use single 1.
- Yes, it is "legal." You are not eligible to claim "exempt." When you file your income tax return for 2008, all will be evened out. Ask your parents.
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