Instead of getting taxes out of my check, how can i have them NOT take out taxes and write a check at the end of the year instead of them taking taxes out?
2006-12-19 13:06:22 · 8 answers · asked by TheDiciple 2 in Business & Finance ➔ Taxes ➔ United States
if you are going to owe taxes, you must allow deductions from your pay check. you can minimize those deductions, but you must allow some.
you need to read this irs document:
http://209.85.165.104/search?q=cache:RTt4pHiAHH0J:www.uwex.edu/payroll/forms/w4faq.pdf+claiming+exempt&hl=en&gl=us&ct=clnk&cd=4&client=firefox-a
if you had no tax liability last year and were eligible for a full refund you have options for having no tax deducted from your check, else, good luck
2006-12-19 13:18:00 · answer #1 · answered by tonkatruk_2001 3 · 0⤊ 2⤋
It is true that you could claim a large number of dependents on your W-4 then pay at the end of the year. However, it is now an offense to claim dependents when there is no basis for doing so.
No matter how income is derived, the USA has a pay-as-you-go system. In the normal course of events, everyone has to pay tax at least four times a year. That is life and all you can do is manage your withholdings so that the tax liability on your return roughly equals what has been withheld during the year.
In any case, you will still have to pay FICA taxes and, depending on your state, unemployment taxes on each paycheck.
2006-12-20 00:14:24 · answer #2 · answered by skip 6 · 0⤊ 0⤋
You can claim more exemptions on your w-4 to reduce the amount of withholding tax. Social Security withholding will remain the same no matter what. BUT if you owe too much at the end of the year, there will be a penalty for underpayment. Best thing to do is set your exemptions so you get little or no refund at the end of the year.
2006-12-19 13:30:29 · answer #3 · answered by crazydave 7 · 0⤊ 0⤋
You could up your exemptions but writing a check for everything in April is not a good idea. The IRS and the states charge penalties for owing too much. It is called an underwithholding penalty.
Plus....if you don't have the money to pay them on 4/15 (as some people don't) they start charging interest and failure to pay penalties.
2006-12-19 13:21:22 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
I know that what you get taken out is not your choice. It is your employer that decides that so if you are working for someone else then you have no say in the matter. However, if you were self-employed or had your own business you could set up something with the IRS so you could pay your full taxes in the end. But, why would you want to pay more at the end?
2006-12-19 13:11:42 · answer #5 · answered by RoRo 3 · 2⤊ 1⤋
You can claim more dependents. But it is not a good idea. I have seen people not be able to pay their tax bill and end up getting fess, penalties and interest. And take years to pay off.
2006-12-19 13:16:56 · answer #6 · answered by raven blackwing 6 · 0⤊ 0⤋
it quite is actual you ought to declare a huge form of dependents on your W-4 then pay on the tip of the year. in spite of the shown fact that, it quite is now an offense to declare dependents whilst there's no foundation for doing so. no depend how earnings is derived, the u . s . has a pay-as-you-pass gadget. interior the traditional direction of activities, everybody has to pay tax a minimum of 4 circumstances a year. it relatively is existence and all you're able to do is manage your withholdings so as that the tax criminal duty on your return type of equals what has been withheld in the process the year. after all, you will nonetheless ought to pay FICA taxes and, finding on your state, unemployment taxes on each and each paycheck.
2016-10-15 06:51:52 · answer #7 · answered by ? 4 · 0⤊ 0⤋
You can claim a huge # of dependents and the taxes taken out will be extremely low.
2006-12-19 16:08:57 · answer #8 · answered by melinda_rn2006 3 · 0⤊ 0⤋