How to File Federal Taxes as Personal Exempt Status
Students or people that are claimed as dependents on a federal income tax return are still expected to file a federal return of their own. The IRS states that anybody that has federal income taxes that are taken from their pay check has to file a tax return. It is extremely important to follow the rules that are put into place by the IRS.
- Check out the guidelines set by the IRS to make sure that you are really tax exempt. You must meet the following terms before you can be considered exempt from the federal income taxes: you made less than the standard deduction and received all of the income tax back, and you know that you are not going to be making more than the federal deduction in the year that is approaching or you owed no federal income tax last year. To find the standard deduction amount, look on the IRS website. You cannot get more than three hundred dollars in dividend income or interest for the year to be considered tax exempt. You may be able to claim this specific status if you make three hundred dollars or less.
- Fill out your W-4 with your employer. Check the exempt box to indicate your exempt status. Make sure that you submit the W-4 every year by the deadline. The deadline is February 15th. If you claim exempt for the year, you have to submit a brand new W-4 every year.
- Watch the money that you make throughout the year. If it looks like you will be making more than the standard deduction requires, you do not qualify for exempt status and you have to file a new W-4.
- File an IRS federal income tax form 1040-EZ that indicates your exempt status. You will have to file a copy of your W-4 with your return just like you would do if you were not filing exempt.
- Evaluate your status again for the next year to make sure if you would qualify for tax exempt status again. If you do not, file a new W-4 again for the upcoming year.