Thursday, December 22, 2011

Claim Exemption, please help?

I believe the Tax Lady, though correct, is brushing over the issue just a little bit. There are many different factors that go into what your potential tax liability will be for the year. Firstly, what is your projected annual salary? After that, aside from you and your husband, (I ume you will be filing jointly), do you have any other dependents? Do you own a home? But yes, basically, if you owed no tax for 2009, meaning not that you simply got a refund, but that the amount of tax on your 2009 tax return (line 11 Form 1040-EZ, line 37 Form 1040A, or line 60 Form 1040), was $0.00, this is the first part of the qualification. Then again, you need to determine, based on your projected income tax situation, whether or not you will incur no tax liability for the current year. If in fact, you meat both criterion, you are able to claim, "EXEMPT" on line 7 of your 2010 W-4.

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