Help!!! Exempt error

Forum|Forum|5 years ago
October 29, 2020
1 reply
3 views

I need some help! I accidentally filed exempt for this year without knowing what it meant and I just realized I’m not exempt. I changed it back to not exempt but I know I’ll probably owe and be charged a penalty. How can I fix it? Any help is welcomed.

Not A Product Question

xmasbaby0

Level 15

Oh no. You mean you have gone all year without having tax withheld? You can change your W-4 with your employer right away and have them start withholding tax but that will not get you out of the hole with only a couple of months left in 2020. You can make an estimated tax payment on the IRS site:

https://www.irs.gov/payments/direct-pay

The tax system is "pay as you go" so you might still end up with an underpayment penalty at tax time and you should expect to owe tax due---but we do not know enough about your income, dependents, filing status, etc. to know that for certain.

Try the taxcaster tool to get an idea of where you will stand at tax time. (it is the tool for 2019 but the tax laws are so similar that it should work for this purpose)

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

And....are you in a state that has a state income tax? You may also owe your state.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

scottbeardsleyAuthor

Level 2

I think I set up exempt in April. I changed it back to not exempt and it offers the ability to have additional taxes withheld. Income is over 50k I’m single and no dependents. Unfortunately I’m in so much debt it’s hard to make any payments right now.

xmasbaby0

Level 15

@scottbeardsley You have been receiving paychecks since April with no federal tax withheld--and now you changed it? Sorry---there is not an easy fix for this if you cannot afford to pay some extra tax at this time. When you prepare your 2020 income tax return you might need to seek a payment plan for the tax you owe. Post back for help then if you need help with how to do that.