Does having ONE exemption on the w-2 (federal) mean the tax is completely blocked?

Question by Jyu Lakeberg: Does having ONE exemption on the w-2 (federal) mean the tax is completely blocked?
I live with my parents in California, who claimed me as a dependent on their taxes. I just did a run through on turbo tax and h&r block. I made 17k last year, and the government took about 1300 from SS, medicare, state, and SUI/SDI. However, I paid ZERO in federal. The only exemption I claimed on my w4 was line B (single w/ 1 job). Both software says I owe 1250.

This is from my W-2 Form from the only job I worked last year:

Exemption/Allowances:
Federal: 1, Tax Blocked
State: 1
and states at the bottom: “If you are claiming exemption from Federal Withholding, you are required to file a new W-4 form by Feb 15, 2012.”

My question here is it that did i made a mistake on my 1040? Because it shows exemption as a big fat ZERO. Does this mean the 1250 I owe is waived had I entered it correctly? But at the same time, is it too late to claim it (feb 15th due date)?

Best answer:

Answer by Judy
If you owe, no it is NOT waived no matter what you entered. You still owe it. Talk to your payroll dept to be sure you have single/0 allowances on your W-4. You can claim single/1 if you want to, but might end up owing a little next year, not as much as this year. Not sure why the federal tax is blocked, it shouldn’t be if you filled out your W-4 correctly. Your payroll dept should be able to tell you. You need to get rid of that “tax blocked”. It’s too late now though to do anything about 2011.

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Does having ONE exemption on the w-2 (federal) mean the tax is completely blocked?

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