accidentally submitted a w2 form with exempt status

[JohnnyM98]

Hey,

I recently got hired at a store near me and when I was doing initial paperwork i completed the w-2 form and accidentally put expempt im currently getting social security benefits, is there a way to correct that or what?

[xmasbaby0]

Do you mean you said on a W-4 that you are exempt?   Fill out a new W-4 for the employer.   The W-4 only goes to the employer to tell them how much to withhold from your paychecks.   It does not go to the IRS or dictate how you file your tax return.   If you do not have any tax withheld you could end up owing.   But if you have been receiving Social Security all year and this is the only other income for 2021 it may not have much affect on your tax for 2021.  Going forward, though, it might matter a lot so make sure you get it right.

https://ttlc.intuit.com/community/tax-topics/help/what-to-know-about-the-new-2020-irs-form-w-4-emplo...

https://www.irs.gov/pub/irs-pdf/fw4.pdf

https://www.irs.gov/individuals/tax-withholding-estimator

[JohnnyM98]

Yes i meant exempt, I have been receiving disability Benita for over a year and I’m using ssa’s work trial program and just recently got this job and I already got my first paycheck and noticed no taxes were withheld will I still end up owing?   

[JohnnyM98]

As and would I file a nc-4 or nc-4Ez form?

[xmasbaby0]

TAX ON SOCIAL SECURITY

Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable. 

 What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2017 that limit was $16,920 —for 2018 it was $17,040—for 2019 it was $17,640— for 2020 it is $18,240; for 2021 it is $18,960)  After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.

To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2020 Form 1040

https://ttlc.intuit.com/questions/1899144-is-my-social-security-income-taxable

https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

You need to file a federal return if half your Social Security plus your other income is $25,000 when filing single or head of household, or $32,000 when filing married filing jointly, $0 if you are filing married filing separately.

Some additional information:  There are 13 states that tax Social Security—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia.  These states offer varying degrees of income exemptions, but four mirror the federal tax schedule: MN, ND,VT, and WV

[SteamTrain]

In addition to the new W-4,   if you are working in NC, you could use either the NC-4 or the NC-4EZ to set up your state tax withholding....but we can't determine which would be best for you since we have no idea about your personal situation (single/married/children?  Std Ded or Itemized Deductions...and a bunch of other etc details).

Certainly, the NC-4EZ is much simpler.   You could sit down and work thru both forms over the weekend, and see if they give you significantly different results (essentially, number of NC allowances to use)

.....................AND there are instructions in each one that suggest when to use, or not use each form:

Again, when filled out, you need to print the forms and give to your employer

____________________________

NC-4EZ

Employee's Withholding Allowance Certificate NC-4EZ | NCDOR

_______________________

NC-4

Employee's Withholding Allowance Certificate NC-4 | NCDOR