W4 question

[Anonymous]

I currently work a normal taxed job. I was hired to do a second job with a new company where the income in not taxable. I have to fill in a W4 and don't know what I am to do with deductions and such or how to do it at all because the pay in its entirety is not taxable and goes 100% to me. (Also tax free state) What do I do here? And the 2019 w4 is totally new on how they set deductions if previously unknown for current feedback. I have to have this in by Monday. Help please.

[CreditInspired]

Are you sure it’s a W4 because IME federal income taxes are withheld using the W4 unless you’re legally exempt.

Usually independent contractors and/or freelancers get 100% of their income and they fill out a W9.

Also, you can ask HR at your new employer these questions.

[Pikaboo-icu]

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@Anonymous wrote:
I currently work a normal taxed job. I was hired to do a second job with a new company where the income in not taxable. I have to fill in a W4 and don't know what I am to do with deductions and such or how to do it at all because the pay in its entirety is not taxable and goes 100% to me. (Also tax free state) What do I do here? And the 2019 w4 is totally new on how they set deductions if previously unknown for current feedback. I have to have this in by Monday. Help please.

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There is a difference between not taxable and working for a company that pays as a private contractor.

If it's truly non taxable income, ok but if you're fill out an I9, you will receive a 1099 at the end of the year.

I used to have employee/contractors that I filed 1099s for and I did not take out taxes, however, they were responsible for paying taxes on the income.

Hopefully, yours is tax exempt, if not, you'll have to add that as income or as self employed income & pay tax & SS tax on it.

Good Luck!! 

[SouthJamaica]

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@Anonymous wrote:
I currently work a normal taxed job. I was hired to do a second job with a new company where the income in not taxable. I have to fill in a W4 and don't know what I am to do with deductions and such or how to do it at all because the pay in its entirety is not taxable and goes 100% to me. (Also tax free state) What do I do here? And the 2019 w4 is totally new on how they set deductions if previously unknown for current feedback. I have to have this in by Monday. Help please.

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I never heard of a job where the wages are not taxable.

[Anonymous]

It is tax free income. I read it in addition to asking everyone including the lawyer overseeing everything is contracted out correctly. I just read online that on the w4 you write "exempt" on line 7, but that was for 2018. I do not have direct contact with the company as it is set up through other paths so no HR to ask. And yes, there are areas of employment where income is tax free.

[CreditInspired]

Yes, one can write exempt and no federal taxes will be taken out. But there are rules for who can file exempt. And, of course you can if you meet them. From Google, it is as follows:

“Certain groups of people who meet specific criteria don't have to pay income taxes. For example, if you're single, under the age of 65, and your yearly income is less than $9,350, or married, under 65, with income less than $18,700, you're exempt from paying taxes.”

Also, if you file exempt and don’t meet the criteria, here is an example of what will occur:

Job 1 you earn $50K in 2019 (1 exemption)
Job 2 you earn $15K in 2019 (exempt)

When you file taxes for 2019, you will be responsible for taxes on $65,000 but only had deductions for $50K.

I hope this makes sense and it’s your choice—have it deducted from each paycheck or pay at the end. But one way or the other IME, you will pay taxes on income you earn.

And, just for my own curiosity, what are some areas of employment where income is tax free?

[FireMedic1]

This kinda sounds like a contract employee. One of the tracks I work at pays me tax free. But I have to file a 1099 because they file what was paid to me to the IRS. So I file quarterly so i dont get nailed annually. Just like checking account bonuses are filed by the banks to the IRS and you have to pay taxes on it. Am I close? Or is this like mowing the neighbors lawn for 20 bucks type thing.

Not to be a party pooper. But why is this in a Credit section?

[UncleB]

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@FireMedic1 wrote:

Not to be a party pooper. But why is this in a Credit section?

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The thread has been moved to Personal Finance because that's where tax-related questions and issues are usually addressed.

[Anonymous]

I was going to file here to begin and didn't find a proper tag that is required so I went to general for the "other".

Anywho, this is new to me and all I know from this area is it is tax free and the other individual working the same position confirmed it is tax free all the way but could not remember how the w4 or anything was done since she also does not handle it herself. Since I have another job I do pay taxes on and will obviously continue to do so, getting this correct is proving to be a challenge. Yes, I know it is vague but I don't care to go into what it is and besides knowing what I am doing and contracted for, I don't have any other information myself. Seems the middle people like to keep you in the dark for them to keep their pay cut.

[FireMedic1]

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@Anonymous wrote:
I was going to file here to begin and didn't find a proper tag that is required so I went to general for the "other".

Anywho, this is new to me and all I know from this area is it is tax free and the other individual working the same position confirmed it is tax free all the way but could not remember how the w4 or anything was done since she also does not handle it herself. Since I have another job I do pay taxes on and will obviously continue to do so, getting this correct is proving to be a challenge. Yes, I know it is vague but I don't care to go into what it is and besides knowing what I am doing and contracted for, I don't have any other information myself. Seems the middle people like to keep you in the dark for them to keep their pay cut.

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Best bet is to walk into a H&R Block or any other pop up tax store and ask. Everything is so secretive and vague as you say. Explain it to them. Then you'll get your answer.