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Lv 4
? asked in Business & FinanceTaxesUnited States · 4 years ago

What does it mean when it says "This year I expect a refund of all federal income tax withheld because I expect to have no tax liability?"?

I'm not sure what this means. I'll earn a little more than $9000 and I'm a full time student. I need to fill out a W-2 for an internship this summer and I don't know what this means.

8 Answers

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  • Amy
    Lv 7
    4 years ago
    Favorite Answer

    Taxes are paid by automatically subtracting them from paychecks. This is called "withholding."

    Tax liability is the amount of tax you owe.

    If you pay too much, it is refunded to you when you file a tax return after the end of the year.

    The statement means "If any money is withheld from my paychecks, I will get it all back because I owe nothing."

    On form W-4, it tells your employer not to withhold any tax.

    $9000 of income is enough to owe some tax if you are a dependent. If you live with your parents (or other relatives) when you're not in school, you are probably a dependent.

  • tro
    Lv 7
    4 years ago

    it means that if you had income tax withheld and your income was not sufficient enough to incur a tax on it, you can file the W-4 as exempt(also along with that provision is the statement you owed no income tax the previous year)

    if your income is $9K and you are a student, likely a dependent, $2700 of your income is taxable

  • 4 years ago

    It means you would be due back ALL income tax withheld and your income would be low enough to have no tax liability.

    Are you a dependent? IF yes, then you will have a tax liability at $9000.

  • Anonymous
    4 years ago

    here is the exact wording on a W4 form -

    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.

    If you meet both conditions, write “Exempt” here

    that "no tax liability" = if you do NOT earn any $$ !!!!!!

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  • Judy
    Lv 7
    4 years ago

    If you are a dependent, and you probably are if you're under age 24, you will have tax liability (pay some tax)and are NOT exempt.

  • 4 years ago

    It means that what you make is less than the amount that a person is allowed to make without paying any income tax. For most of the population, this amount is approximately $10,000. However, for almost everyone under 19 and most full time students under 24, it is much less, well below what you made. Because you make roughly $9000 and are a full time student, you should not check that box.

  • ?
    Lv 7
    4 years ago

    If you are a dependent, you should put single 0 on the W-4. Your income would be too high to be exempt.

  • ?
    Lv 7
    4 years ago

    you don't fill out w-2's. They come from the employers at the end of the year. You fill out W-4's

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