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I claimed exempt 01-06-2025 - 03-22-2025 would I get charged anything? I was undergoing financial hardships and needed more money. Would I face any backlash?

 
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KeshaH
Expert Alumni

I claimed exempt 01-06-2025 - 03-22-2025 would I get charged anything? I was undergoing financial hardships and needed more money. Would I face any backlash?

When you claim exempt, your employer doesn't withhold federal income tax from your paycheck. This doesn't mean you don't owe the tax - it just means you're not prepaying the tax during the year.

 

This means that when you file your 2025 tax return next year, you may have a balance due or a significantly smaller refund than you're used to. If you owe at least $1,000 and didn't make your required minimum payment, you might have to pay the underpayment penalty.

 

The IRS only allows you to claim exempt status if you didn't pay any taxes last year and you expect to pay no taxes this year.

 

Since you claimed exempt for a short time, the impact may be small based on your overall income and tax situation for the year. To avoid a surprise tax bill next year, you should estimate your 2025 tax liability to make sure that your withholding for the rest of the year will cover it. If not, consider adjusting your W-4 to have extra money withheld and/or set aside some savings to cover any tax bill you may have.

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