When do you have no tax liability on your W-4?

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When do you have no tax liability on your W-4?

Anything that remains unpaid from previous years must be added to your liability for the current year, such as if you entered into an installment agreement to pay off last year’s tax debt and you haven’t made the last payment on that agreement yet. Your tax liability is everything you owe the IRS at any given point in time.

Q. Who qualifies for no tax liability?

You had no tax liability for the prior year if your total tax was zero or you didn’t have to file an income tax return. Your total tax was zero if the line labeled “total tax” on Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S Tax Return for Seniors was zero.

What is meant by “no tax liability” in the exceptions to the estimated tax penalty? You had no tax liability for the prior year if your total tax was zero or you didn’t have to file an income tax return.

Q. When do you have no tax liability for the current year?

If your income situation has not changed at all since the prior year, and you had no tax liability for that year, you will most likely have no current-year tax liability. In this case, claiming exemption puts money in your pocket throughout the year rather than receiving it as a refund after you file your taxes.

Q. When do you have to add unpaid taxes to your tax liability?

If you were refunded the entire amount withheld on your prior year’s taxes and did not owe any taxes for any other reason, then you had no tax liability for that year. However, if you simply did not owe taxes on your tax return, this does not mean you had no tax liability.

Q. Do you have to file tax return if you have no tax liability?

You had no tax liability for the prior year if your total tax was zero or you did not have to file an income tax return. For additional information on how to figure your estimated tax, refer to Publication 505, Tax Withholding and Estimated Tax.

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