Whats the meaning of tax exempt and no exempt?

Paul Maymi: If you are talking about filing a W-4, claiming "exempt" tells your employer not to withhold any income tax from your check. You are swearing under penalty of perjury that you don't expect to have any tax liability for the year.This does NOT exempt you from paying tax, just means nothing will be withheld so if you do owe, you'll have to pay it all in a lump at the end of the year, and might be subject to penalties also....Show more

Jerald Florence: Tax-exempt means that certain income is not subject to tax. For example, a federal tax refund is tax-exempt. You do not pay taxes on this. If a senior citizen's only income is social security benefits, these benefits are tax-exempt. They are not taxable.

Gaynell Pizzaro: Tax exempt meaning , there is no tax to be paid on the item of purchase . Non tax exempt meaning that will be tax to be paid on the item of purchase .