sirburd
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The big question here is who is paying for your schooling. If you are paying for it, then tyou will probably havenothing to worry about at all. You probably took 4 courses a semester, and paid over 10000 in tuition unless you got it all on scholarship. You are eligible each year for up to 20% of the first 10000 in tuition and fees as a tax credit---or, if you use up 10K in tuition that year for a full 2000 dollar tax credit. Over your lifetime, you cannot take more than 10K in Lifetime earning credit, but there are other college deductions.
If you are working full time and are taking at least half your credits in that line of work, you can write off other expenses as well if it meets minimum standards and then some.
So, even without the appropriate amount, based on your educational credits alone, you may be off the hook and still get a sizeable refund back.
Go to a good Tax pro, but you did not make so much money that it would hurt if you went to a HR Block office and tok their advantage for a few extra dollars.
But, if you paid, any money in tuition, and get a 1088 T--IRS Tuition statement, you are in decent shape. That tax credit will offset your exemption error.
My whole family was in the business for years. |
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sr
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you arent going to jail. but you may owe when it comes tax time. dont worry, you will be fine as long as you pay what you owe. relax.. |
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Pres
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no its not gonna mess u up..u will just end up paying a little more in ur taxes start putting some aside so when it comes time to do them u will have the money |
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milton b
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You are really panicking about nothing. You have done nothing wrong you are not in trouble with the IRS. You can change your W-4 now and have your employer withhold more money. You may still owe the IRS some money when you file your return next year, but as long as you pay them there is no problem. |
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♥ ♥ C.J. ♥ ♥
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No,
You will just have to pay the difference when you do your taxes next year. |
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pugetsound1973
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No you will not go to jail...all that will happen is at the end of the year when you do your taxes you will owe them money. Nothing bad happens…IE No recorded…….. unless you do not pay them when you file taxes at the end of the year.
If you want you can option for the IRS to take a additional amount out each pay period like $10.....but if it was me I would just wait until the end of the year and when I file my taxes pay them what I owe then....It should not be very much. |
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nailcikcia
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You're fine hun. Most people don't end up paying enough into their taxes. You just pay what you owe when you get your taxes done. They even can do payment plans. You won't owe much, if anything. You really didn't make enough to be taxed much. When I was in college just a couple years ago, I only made about $13000 that year, and paid about $200 in federal taxes. Don't worry. You're ok. |
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crankyissues
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Have your job take out extra in your taxes for the remainder of the year.
More than likely, you'll just have to pay in the money that you owe when tax time rolls around- so put some into savings each week and plan for it.
You can also contact the IRS for a more "professional" opinion, but I'm sure you don't have to worry about doing any jail time- especially since you're trying to resolve your mistake!
Don't panic! You'll be fine! |
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Nick B
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Some of these "answers" are terrible...
First off, don't worry..you're not in any legal trouble. Basically, you didn't withhold federal and state taxes early in the year...so now you have to play catch-up (so you don't have to pay a big number when you file your tax return).
You can calculate this by using last years tax return and estimating what it will be this year. If that's not your cup of tea, call your local accounting firm. They'll be able to help you out as well.
My advice is to figure out what you'll owe now and start making adjustments to make up for the amount of money you didn't withhold. You can talk to the payroll dept where you work and have them adjust your withholding from now on or set aside money yourself from every paycheck. I would personally try to have it done for me because, well, when I get money I spend it on junk.
To sum it up:
Don't Panic!
Figure out how much you should've withheld (fed & state)
Withhold that amount + normal amount
Enjoy the rest of the year. |
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Spirit
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Relax...the IRS is looking for much bigger fish to fry than you...ask about getting on some type of installment plan, they'll work with you.... |
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Angela C
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I remembered that student workers were exempt from social security withholdings when I was in college....maybe true for you...ask your manager.
B. Exemption under Internal Revenue Code Sec. 3121 (b)(10)
Section 3121 (b)(10) allows an exemption from FICA to students who are enrolled and regularly attending classes. This exemption is allowed for nonresident alien students as well as U.S. students. |
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sooners83
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Oh no, you didn't ruin your life at all. They will ask for their money (if they catch it) and you will have to pay them... You may be able to call the IRS and ask what to do now. |
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terrisilvers
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Your W-4's are not a binding document, they are a way for you to tell your employer what you think you will need deducted for the year. What you are doing, in essence, is asking the government to open a savings account to hold money for you, so that you don't have to pay a big chunk next April. What you need to think about is will the money they deduct till the end of the year cover the money they did not take out the first part. You say you first signed your W-4 in March. Does that mean you only worked March, April and June on that form? Three months w/ no deductions might not be that bad. You may even still get money back, depending on how few deductions you took on the new form. |
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googooslide2000
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You are not breaking any laws. You don't have to pay SS taxes on the school income, especially if it's from Federal Work Study. Plus, it doesn't matter what you put on your w-4's as long as you file properly at the end of the year. |
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smh60437
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Listen to Judy, she is correct. NOt to mention by the time you take into account the credits available for education you likely won't owe any money anyway. |
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zina
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File another w-4 and have them withhold an extra amount. You are not gonna go to jail. If you owe taxes you will be able to pay when you file. |
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oakhill
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Relax, you will not go to jail for paying too little via your w-4. If your income is substantially larger than what you anticipated, you can always pay quarterly income tax. The amount in question is relatively small and will, at the worst , give you a small penalty tax when you do pay. However, based on the attached IRS link, if you are planning on making $6000, the correct claim is "0" on your w-4. Your decision to change the w-4 last month was a good one. The worst case now is you might owe a little when you file your 2007 taxes. |
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Judy1
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Relax - you are definitely not going to jail, and you haven't done anything to mess up your life. The worst thing that could happen is when you file your return, you could owe some money. If you owe over $1000, you could owe an additional amount for underwithholding.
You could fill out yet another W-4 and request that they take out a little extra from each pay until the end of the year - you'd put that on line 6 - then you might be able to break about even for the year.
If the $6000 was your total income for the year, you'll owe very little, maybe a couple hundred dollars total. If you are still working when school starts back up, your tax liability will be more, so you probably want to get some extra taken out now to avoid owing when you file your return.
Good luck - and QUIT BEING SO WORRIED! |
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Steve
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The worst case scenario is that you will owe $65 to the IRS assuming that $6000 will be your total income. |
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Pyro
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No, no, no. Don't worry too much. When you calculate your taxes at the end of the year it will show up that you owe the IRS money, and you just send them in a check, the same way they send you a check back if they took out too much money. You're fine. if you ever do screw up your taxes don't worry about it, just explain your situation to the IRS and if you're unlucky they MIGHT fine you a bit. They don't clamp down their iron fist on everybody and their moms for tax evasion though; that's only in the movies. |
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fredrick z
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No it wont ruin your life. Conditions change all the time. You will certainly have to pay the amount that should have been withheld, you may even have to pay a small penalty (nothing serious) but you are not going to jail. |
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wartz
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If the tax due on an income tax return is less than $1,000 and is paid with the return, IRS doesn't worry it at all. |
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Pattycake
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You won't go to jail so keep calm. If you wind up at the end of the year owing more than you had withheld, you'll be subject to a penalty and that penalty will be added to your tax bill. You changed it in July but be sure your employer is withholding as much as possible. If you can afford it, you can do another W-4 and have them withhold an additional amount on top of what they withhold from the table. If you do have any extra money now you could also go ahead and make an estimate to help cushion the blow on April 25. My advice would be to go to a reputable tax professional now, before the year is over and he/she can review your options with you in detail. If you can't afford to pay for the advice, a lot of cities and universities have low cost tax clinics that can help you. If you are a university student now, check the law school or business school. If you can't find one, you can probably figure all this out yourself on the IRS website. The IRS also has a group called Taxpayer Assistance that answers questions over the phone but be warned that if they tell you the wrong thing, you'll still be subject to any penalties you are assessed from relying on their advice. |
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Mark S
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You can have extra taken out of your pay or you can make an estimated payment using form 1040ES |
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dimples91151
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i'm pretty sure you can do a new one for now but you'll just have to pay the extra come tax time. So start taking it out and out it into a saving account. Don't touch it. |
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Enigma
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My advise to you is to find yourself a tax adviser.Also you may want to contact a lawyer if you really think there could be legal repercussions. More likely,you would be given a chance to rectify you mistake with the IRS. |
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7 Habits
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Check with a taxman. There is always things to do to fix these kinds of problems. I just went through it myself. |
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dolaindeed
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Get ahold of a financial advisor, they all about that and can tell how to handle it properly. Calm down, all you need is someone who knows the law and its kinks |
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Chelsea
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Just file your taxes and put what you owe in there. I believe that's all you have to do. Ask an accountant to be certain, but I'm pretty sure that's all you have to do.... You didn't ruin your life. |
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Kue
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Going 4 months exempt won't get you arrested, you might have to pay in a bit more. Go to an H & R Block and ask them what will happen for sure but don't worry, you'll be fine. |
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E M M A
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Show the mistake to them and call them. Something might happen, but if they took you to court, you could probably leave with just a fine. |
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