Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 2 months ago

Taxes please explain ?

Does exemption mean you keep all your taxes or they just take some out? 

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8 Answers

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  • ?
    Lv 5
    2 months ago

    When working, in America, Social Security and Medicare are automatically deducted from your wages.  The same goes for State Withholding and Federal Withholding - depending on how you fill out the W-4.  If are only working part-time and going to school..........you check the Exempt box.......then, only the Social Security and Medicare will be deducted.  If you are not in school and working full-time..........then all taxes are deducted.

  • 2 months ago

    Part of your income is exempt from tax.

  • 2 months ago

    If you are actually exempt, you pay no INCOME taxes.  FICA taxes still come out.

  • ?
    Lv 7
    2 months ago

    Ugh, that form is using the wrong word.

    In part 1, "exemption" means part of your income is not taxed or your tax is reduced. 

    Most adults are allowed to earn a certain amount before tax kicks in - that's the "exemption for yourself." Your tax is also reduced if you have dependents (usually your children). To compensate, dependents have a reduced exemption for themselves on their own taxes.

    In part 3, "exempt" means you won't earn enough to owe any tax at all.

    If you're starting a job in November after not working all year, you might not earn enough to owe any tax in 2020. Thus you might be allowed to check "exempt" in part 3. But you'll have to fill out a new form W4 in January 2021 to start withholding tax.

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  • Anonymous
    2 months ago

    ask your teacher. damn cheater

  • 2 months ago

    It cuts part of the bill.

  • ?
    Lv 7
    2 months ago

    An exemption would be a child you can claim on your tax return etc. The more exemptions you claim the less tax they take out. Claim too many and you can be penalized, and also owe a lot of tax when you file your return.

  • 2 months ago

    the lower the exemptions, the more they take out.  what matters is how much you owe in the end.  rule of thumb, have 1 exemption per dependent to most likely get a return.  

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