Taxes 101 Can I File Exempt & Still Get a Tax Refund? Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Published Feb 28, 2024 - [Updated Dec 19, 2024] 4 min read Last tax season, more than 75% of taxpayers received a tax refund, and the average refund was over $3,000. You can get started now with TurboTax and get closer to your tax refund, and if you have questions on your taxes, you can connect live via one-way video to a TurboTax Live tax expert with an average of 12 years of experience to get your tax questions answered from the comfort of your couch. As you may already know, the IRS issues tax refunds when you pay more tax during the year than you actually owe. When you file exempt with your employer for federal tax withholding, you do not make any tax payments during the year. Without paying tax, you do not qualify for a tax refund unless you qualify to claim a refundable tax credit, like the Earned Income Tax Credit. The tax law requires your employer to withhold federal income tax from each paycheck you receive and send it to the IRS on a quarterly basis. At tax time, your employer provides you with a W-2 Form that reports the total amount of taxes withheld during the year. When you sit down to do your taxes, if the taxes you owe are less than the total amount withheld, the IRS will send you a tax refund for the difference. Generally, if you are self-employed and expect to owe $1,000 or more, you are required to make income tax payments every three months throughout the year. If you have questions, we have TurboTax Live Premium tax experts, available in English and Spanish, to help you with your personal and business income and expenses. Table of Contents Filing exempt from withholdingUpdate your W-4Refundable tax credits Filing exempt from withholding When you start a job, your employer will ask you to fill out IRS Form W-4. The W-4 helps you estimate the amount that should be withheld from each paycheck based on the tax information you provide. To claim an exemption from withholding, you must meet certain criteria. If you had even $1 of tax liability in the prior year or anticipate earning income in excess of the sum of your standard deduction ($13,850 single, $20,800 head of household, $27,700 married filing jointly), you cannot be exempt from federal tax withholding in the current year. For example, if you file as single on your 2023 taxes, you must not anticipate earning income in excess of the standard deduction of $13,850. If you still claim exempt from withholding and earn income in excess of this amount, you will probably owe some taxes unless you qualify for refundable tax credits like the Earned Income Tax Credit or the Child Tax Credit. Update your W-4 If you are unable to claim exempt from withholding, you can still reduce the amount that is withheld from your paycheck by updating your W-4 and changing your withholding. There is a redesigned IRS W-4 now called the W-4 Employee’s Withholding Certificate instead of the W-4 Withholding Allowance Certificate that has been updated to reflect changes under tax reform. The IRS W-4 was redesigned to align with changes under tax reform and to help taxpayers figure out their correct withholding after tax law changes. One of the biggest changes on the W-4 form was the elimination of personal allowances since allowances were tied to the dependent and personal exemption which were eliminated. The redesigned W-4 will take into account whether you can claim the Child Tax Credit and whether you can claim tax deductions other than the standard deduction, both of which can reduce your withholding. Refundable tax credits A refundable tax credit means that even if you have zero tax liability before claiming the tax credit, you may still get a tax refund. Refundable tax credits not only reduce federal taxes you owe, but they also could result in a tax refund even if the tax credit is more than the tax you owe. For example, the American Opportunity Tax Credit that covers certain higher education expenses is 40 percent refundable, and the Earned Income Tax Credit is fully refundable, so if you are eligible for these tax credits you may see a tax refund even if you paid no income tax for the year. No matter what moves you made last year, TurboTax will make them count on your taxes. Whether you want to do your taxes yourself or have a TurboTax expert file for you, we’ll make sure you get every dollar you deserve and your biggest possible refund – guaranteed. Get started now Previous Post Estimated Quarterly Tax Dates in 2025 Next Post Is Workers’ Compensation Taxable? Everything You Need to Know Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. 188 responses to “Can I File Exempt & Still Get a Tax Refund?” « Older Comments Newer Comments » Hi there, I am single with one dependent, should I claim 2 exemptions? The W-4 I filled out had me tax exempt when I checked the box re: being entitled to all of my federal refund and not owing any taxes. Hello I just recently started at Chrysler and the federal taxes are eating me up I wonder if I filled my W4 out correctly. I take care of my siblings a brother and sister who stay with and I’m single. Do I claim exempt? How many allowances should I have? Hi -You TurboTax can help you fill out a revised Form W-4, but a good first guess would be either 3 or 4 allowances. You should NOT claim “EXEMPT,” which has very strict rules. You can learn more at the attached link. Cheers… –Christopher https://turbotax.intuit.com/support/go/GEN85252 i make 9.00 hr paid byweekly can i put 3 allowances???? im single with no kids i dont want taking so much from my paycheck so i want to put 3 allowances i dont want to owe the goverment either.. am i alright?? i live in texas if that matters Hi Daniel – Keep in mind that there are penalties for under-withholding (i.e., owing the IRS too much at tax time). The attached link has more information about claiming allowances. Hope it helps! –Christopher I am married with 3 children and filed exempt. can I still get a tax refund for my children? Hi Rosie – Maybe…did you have earned income? Depending on your income, you may qualify for an Earned Income Credit or the Child Tax Credit. I recommend you go through the Credits and Deductions section in TurboTax. The software will guide you and calculate any tax credits you qualify for automatically after you go through that section. Thanks, Karen I am in college and work at the college under the work study program. I claim exempt since the money they use to pay me is grant money. Can I still Get a refund? Hi d.ledsma – Are you the only wage earner in the family? And, can anyone else claim you as a dependent? If not, and you pay for education costs, you may be entitled to an education credit. I recommend you go through the Credits and Deductions section in TurboTax. The software will guide you and calculate any tax credits you qualify for automatically after you go through that section. Thanks, Karen Hello lisa or chris i made 9172 in 2012, i was exempt from state and federal taxes because i was in school! I am a depenndent my mother claims me. around November i claim zero on state and federal! Will i have too owe, or do i file? Hi Pat – Our free TaxCaster app can help you esitmate your taxes. Check it out! https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ –Christopher Dear Lisa or Chris, I had 3 jobs last year. The first two were about 2.5 months each, and I am single and claimed either 1 or 2 for both, so had taxes taken out. My 3rd job I started in November, also with taxes taken out, except the last 5 weeks of the year (which I worked lots of overtime) and I was paid weekly, I got roughly $960 a week. I have to renew my 2013 w4 exemption this week, I have not yet filed my taxes, should I be ok to still file exempt for a couple more months this year? I would think my first 2 jobs and part of the third one would still entitle me to a refund/balance out the 4 or 5 weeks I was exempt at the tail end of 2012? Hello Mikey – Karen here… It’s difficult to say unless you know for sure what your income and deductions will be in 2013. You can also use TaxCaster, our tax refund calculator to estimate your tax refund. Here is the link https://turbotax.intuit.com/tax-tools/ Hope that helps. Karen I worked as an intern this past summer and the compnay did not with hold federal taxes and now I owe. Is there anyway around this. Oh, btw. When I started working I completed a w-4 form, it was faxed, and received by the book-keeping office. So, there was a w-4 form submitted and on file. Hi Sonia – The more withholding you have taken out, the larger your refund will be. There’s no reason why you can’t still file, and you can always submit a new W-4 to your employer to update. In fact, TurboTax will help you complete it. Hope that clarifies! –Christopher Hi Lisa, I started working in August 2012′ and claim 5 (my self, three dependents, and head of household= my 5) on my w-4 form and when I file, and deductions are taken out as usual. I know its my responsibility to check my pay stubs I did but didn’t realize that federal deductions were not being taken out. I did’t realize this until January. I called my employers bookkeeping company and they said that if I wanted federal deductions to be taken out I should have requested it. I was very upset to get this response. Yes, I should have caught this sooner. I will take responsibility for that but I have never had an issue before, I’ve been doing the same thing for the last 12 years. The bookkeeping office still states that there is nothing they can do, and nothing wrong with their program, and if I wanted extra deductions I should have requested it. So, my question is can this be fixed some how? Can I still file? Am I entitled to a refund? Any info will help, thanks. « Older Comments Newer Comments » Browse Related Articles Tax Deductions and Credits I Claimed Exempt, Can I Still Get a Tax Refund? Tax Planning IRS Reports Tax Refunds are Up This Year Tax Refunds What To Expect When You’re Expecting…a Tax Refund Tax Planning Did You Miss the Tax Deadline? 3 Steps You Can Take Next TurboTax News Government Shutdown 2019 Update: You Can File Now With TurboTax Tax Tips 10 Popular Tax Myths Busted by Actress Jenny Lorenzo Tax Refunds Offsets for Taxes: What It Means & What to Do Family How Child Support Affects Your Taxes Tax Refunds File Your Taxes: You May Have Unclaimed Refunds Waiting Tax Deductions and Credits TurboTax Answers the Top 5 Commonly Asked Tax Questions for 2014
Hi there, I am single with one dependent, should I claim 2 exemptions? The W-4 I filled out had me tax exempt when I checked the box re: being entitled to all of my federal refund and not owing any taxes.
Hello I just recently started at Chrysler and the federal taxes are eating me up I wonder if I filled my W4 out correctly. I take care of my siblings a brother and sister who stay with and I’m single. Do I claim exempt? How many allowances should I have?
Hi -You TurboTax can help you fill out a revised Form W-4, but a good first guess would be either 3 or 4 allowances. You should NOT claim “EXEMPT,” which has very strict rules. You can learn more at the attached link. Cheers… –Christopher https://turbotax.intuit.com/support/go/GEN85252
i make 9.00 hr paid byweekly can i put 3 allowances???? im single with no kids i dont want taking so much from my paycheck so i want to put 3 allowances i dont want to owe the goverment either.. am i alright?? i live in texas if that matters
Hi Daniel – Keep in mind that there are penalties for under-withholding (i.e., owing the IRS too much at tax time). The attached link has more information about claiming allowances. Hope it helps! –Christopher
Hi Rosie – Maybe…did you have earned income? Depending on your income, you may qualify for an Earned Income Credit or the Child Tax Credit. I recommend you go through the Credits and Deductions section in TurboTax. The software will guide you and calculate any tax credits you qualify for automatically after you go through that section. Thanks, Karen
I am in college and work at the college under the work study program. I claim exempt since the money they use to pay me is grant money. Can I still Get a refund?
Hi d.ledsma – Are you the only wage earner in the family? And, can anyone else claim you as a dependent? If not, and you pay for education costs, you may be entitled to an education credit. I recommend you go through the Credits and Deductions section in TurboTax. The software will guide you and calculate any tax credits you qualify for automatically after you go through that section. Thanks, Karen
Hello lisa or chris i made 9172 in 2012, i was exempt from state and federal taxes because i was in school! I am a depenndent my mother claims me. around November i claim zero on state and federal! Will i have too owe, or do i file?
Hi Pat – Our free TaxCaster app can help you esitmate your taxes. Check it out! https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ –Christopher
Dear Lisa or Chris, I had 3 jobs last year. The first two were about 2.5 months each, and I am single and claimed either 1 or 2 for both, so had taxes taken out. My 3rd job I started in November, also with taxes taken out, except the last 5 weeks of the year (which I worked lots of overtime) and I was paid weekly, I got roughly $960 a week. I have to renew my 2013 w4 exemption this week, I have not yet filed my taxes, should I be ok to still file exempt for a couple more months this year? I would think my first 2 jobs and part of the third one would still entitle me to a refund/balance out the 4 or 5 weeks I was exempt at the tail end of 2012?
Hello Mikey – Karen here… It’s difficult to say unless you know for sure what your income and deductions will be in 2013. You can also use TaxCaster, our tax refund calculator to estimate your tax refund. Here is the link https://turbotax.intuit.com/tax-tools/ Hope that helps. Karen
I worked as an intern this past summer and the compnay did not with hold federal taxes and now I owe. Is there anyway around this.
Oh, btw. When I started working I completed a w-4 form, it was faxed, and received by the book-keeping office. So, there was a w-4 form submitted and on file.
Hi Sonia – The more withholding you have taken out, the larger your refund will be. There’s no reason why you can’t still file, and you can always submit a new W-4 to your employer to update. In fact, TurboTax will help you complete it. Hope that clarifies! –Christopher
Hi Lisa, I started working in August 2012′ and claim 5 (my self, three dependents, and head of household= my 5) on my w-4 form and when I file, and deductions are taken out as usual. I know its my responsibility to check my pay stubs I did but didn’t realize that federal deductions were not being taken out. I did’t realize this until January. I called my employers bookkeeping company and they said that if I wanted federal deductions to be taken out I should have requested it. I was very upset to get this response. Yes, I should have caught this sooner. I will take responsibility for that but I have never had an issue before, I’ve been doing the same thing for the last 12 years. The bookkeeping office still states that there is nothing they can do, and nothing wrong with their program, and if I wanted extra deductions I should have requested it. So, my question is can this be fixed some how? Can I still file? Am I entitled to a refund? Any info will help, thanks.