Message Font: Serif | Sans-Serif
No. of Recommendations: 0
<The trouble is that unless your employer was breaking the law by failing to withhold income tax and social security and medicade insurance, you will need to file in order to get a refund, if they withheld more than necessary.>

Segment 1:<..unless your employer was breaking the will need to file in order to get a refund..>

Yep. I already said that about the refund, but it's worth repeating. As a side note, while I'm not an expert on payroll taxes, I believe that you can legally have no withholding for income tax by the employer. The calculation, if I'm correct, is determined by comparing your projected annualized income with the threshold level tied to your W4. I don't believe that it is always true that a wage earner will have federal income tax withholding, but the exceptions will be at very low income levels.

Segment 2:<..and social security and medicade insurance, you will need to file in order to get a refund..>

Nope, not entirely correct. I believe Medicade has no cut-off, so no excess could occur. SS is assessed on about the first $65K of income, but excess payment would *only* occur if you exceeded that total *and* it came from multiple employers. At that income level, not filing is no longer an option regardless of refund status. (And if you can earn that as a student, please hire me when you're running your own company!)

I don't think that JeanDavid meant to imply that FICA could be refunded if you're a student, but some might mistakenly read it that way. I hope this answers that question before it's asked.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.