Can I work 40 hours and file exempt? I know last year I happened to ended up owing money. I was wondering if I can do so without getting into any problem .

[uncletay87]

Can I work 40 hours and still file exempt, and not get in trouble? I owe money on my last tax return. Also by me wanting to file exempt, will I be ok with doing long as I change it back to non exempt within a short period of time ?

[SweetieJean]

Do NOT claim Exempt. However, you can increase the number of exemptions on your W4 form to, say, 10.

Your prior tax debt is not going to go away. And if you end up owing 2016 as well, you could be subject to additional penalties and interest. Also note that the IRS can attach your paycheck and/or bank account.

[macuser_22]

You *cannot* be exempt since you had a tax liability last year (and will probably have a tax liability again this year).  It would be illegal to file exempt under that circumstance.

[uncletay87]

I understand what your saying, but I had already setup a payment plan already for this past filing my return. I was told by a lady who works in finance at my job informed me that , I can just long as I switch it back ahead of time, beofre I go to file for this year. Also and for my understanding I talked to one of the agent here for turbo tax and they was letting much informing me the same thing .

[macuser_22]

A payment plan has nothing to do with filling out a W-4 claiming exempt.

This is what the W-4 form says:

"I claim exemption from withholding for 2017, and I certify that I meet both of the following conditions for exemption.
• Last year I had a right to a refund of all federal income tax withheld because I had no tax liability, and
• This year I expect a refund of all federal income tax withheld because I expect to have no tax liability.

Under penalties of perjury, I declare that I have examined this certificate and, to the best of my knowledge and belief, it is true, correct, and complete"

Therefore, if you had *any* tax liability in the previous year you cannot claim exempt and if you expect any tax liability in 2017 you cannot claim exempt.   "I can just long as I switch it back ahead of time" indicates that you really do not believe that the second condition is "true, correct, and complete".

It is not likely that anything would every come of it, but if you are under withheld because of claiming exempt it is possible.   You can do what you want, but you must have had 2nd thoughts about this or you would not have asked the question.  I am just pointing out the requirements, language and perjury statement on the W-4 form.

As SweetieJean said - increase the exemptions which will lower the withholding (maybe to zero) which will accomplish the same thing without filing what might be a false statement.

[uncletay87]

Thank y'all so much for taking the time out to let me know.  Yes I was having seconds thoughts and I do not want to take any chances with doing so especially me owing money. But after it's all said and done then I'll feel more comfortable with doing so . I am starting to really look into my taxes as well as how to locate my money and be able to make a living and have more.