Frequently Asked Tax Questions And Answers
Keyword: W-4
1.16 IRS Procedures: W–4 - Allowances, Excess FICA, Students, Withholding
Every U.S. citizen or resident must file a U.S. income tax return if certain income levels are reached. There is no exemption from tax for full-time students. Factors that determine whether you have an income tax filing requirement include:
- The amount of your income (earned and unearned),
- Whether you are able to be claimed as a dependent,
- Your filing status, and
- Your age.
You may have given your employer a Form W-4 (PDF), Employee's Withholding Allowance Certificate, claiming exemption from withholding. To claim exemption from withholding, you generally would have to have had no tax liability the previous year and expect none in the current year. An exemption certificate is good for the calendar year.
For related topics see Tax Information for Students .
References:
- Publication 17, Your Federal Income Tax
- Publication 505, Tax Withholding and Estimated Tax
- Form W-4 (PDF), Employee's Withholding Allowance Certificate
- Tax Information for Students.
Generally, if an employer does not withhold income taxes, social security, and Medicare from your pay, you are being treated as an independent contractor (self-employed person). If you believe an employee relationship exists and you cannot resolve this matter with your employer, you should submit a Form SS-8 (PDF), Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding. The factors used to determine if an employer-employee relationship exists are covered in Chapter 2 of Publication 15-A (PDF), Employer's Supplemental Tax Guide.
If your status as an employee is not at issue, it may be that you are in a category of employment whose earnings are not defined as wages under U.S. federal tax and social security law. Find out from your employer the reason that social security and Medicare taxes and income taxes are not being withheld from your pay. If you have further questions, contact the IRS at 800-829-1040 or visit an IRS walk-in office for assistance.
References:
- Form SS-8 (PDF), Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding
- Publication 15-A (PDF), Employer's Supplemental Tax Guide
- Publication 1779 (PDF), Independent Contractor or Employee
Yes, the employer is required to withhold income taxes. Chapter 9 of Publication 15, Circular E, Employer's Tax Guide, states that if an employee does not give you a completed Form W-4 (PDF), Employee's Withholding Allowance Certificate, withhold tax as if he or she is single, with no withholding allowances.
The employer is also required to withhold social security and Medicare taxes.
References:
- Tax Topic 753, Form W-4 - Employee's Withholding Allowance Certificate
No, this requirement has been eliminated. In the past, employers had to routinely send the IRS any Form W-4 (PDF), Employee's Withholding Allowance Certificate, claiming more than 10 allowances or claiming complete exemption from withholding if $200 or more in weekly wages was expected. However, Forms W-4 are still subject to review. Employers may be directed (in a written notice or in future published guidance) to send certain Forms W-4 to the IRS. The IRS also will be reviewing employee withholding compliance and you may be required to withhold income tax at a higher rate if notified to do so by the IRS.
References:
- Publication 15, Circular E, Employer's Tax Guide
- Form W-4 (PDF), Employee's Withholding Allowance Certificate
- Tax Topic 753, Form W-4 - employee's withholding allowance certificate