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The tax exempt certificate is proof that individuals, businesses, and organizations are eligible to claim tax exemption.
Where Can You Get This Certificate?
People, businesses, and organizations filing for tax exempt status should obtain certification from both the State Department of Revenue and the IRS.
Tax Exempt Certificate FAQs
Q: What Individuals Qualify for Tax Exemption?
A: Individuals who make less than a certain amount of (low) income annually and who are eligible for total income tax withheld refunds each year. See your state's and the IRS guidelines to learn more.
Q: What Businesses and Organizations Qualify for Tax Exemption?
A: Non-profit and charitable businesses and organizations are eligible for state tax exemption and may qualify for federal tax exemptions. Other organizations and businesses that may qualify are social welfare organizations, social clubs, agricultural or horticultural organizations, labor organizations, political organizations, veterans organizations, fraternal societies, employee benefits associations, and business leagues (trade associations), among others.
Q: What's the First Step to Attaining This Certificate?
A: Individuals should file the W-4 form with their employers for federal income tax exemption. State income tax exemptions differ by state. Business and organizations should fill out the appropriate State and Federal forms through the State Department of Revenue and the IRS.
Getting Help
If you're unsure of your tax exempt status, contact the IRS, a tax exemption attorney, or an accountant.
Where Can You Get This Certificate?
People, businesses, and organizations filing for tax exempt status should obtain certification from both the State Department of Revenue and the IRS.
Tax Exempt Certificate FAQs
Q: What Individuals Qualify for Tax Exemption?
A: Individuals who make less than a certain amount of (low) income annually and who are eligible for total income tax withheld refunds each year. See your state's and the IRS guidelines to learn more.
Q: What Businesses and Organizations Qualify for Tax Exemption?
A: Non-profit and charitable businesses and organizations are eligible for state tax exemption and may qualify for federal tax exemptions. Other organizations and businesses that may qualify are social welfare organizations, social clubs, agricultural or horticultural organizations, labor organizations, political organizations, veterans organizations, fraternal societies, employee benefits associations, and business leagues (trade associations), among others.
Q: What's the First Step to Attaining This Certificate?
A: Individuals should file the W-4 form with their employers for federal income tax exemption. State income tax exemptions differ by state. Business and organizations should fill out the appropriate State and Federal forms through the State Department of Revenue and the IRS.
Getting Help
If you're unsure of your tax exempt status, contact the IRS, a tax exemption attorney, or an accountant.
