Do you HAVE to fill out your W-4s, can the gov't tax your time? I was told you can opt to NOT fill out your W-4, keep all your money each week- but you can't file at the end of the year for a refund (as you have paid no taxes in)- is the true or is someone trying a line of B.S.?
2007-01-01 16:07:25 · 7 answers · asked by cherrie_pie_69 2 in Business & Finance ➔ Taxes ➔ United States
I was told that being that the Fed. & state gov't get taxes from everything that you buy, that by them taking $ from your paycheck that it's double tax (illegal?) and you don't have to do that- I know a business owner that went to court 20 years ago over this and won- he only has to pay taxes on materials that he PURCHASES to complete his job, not his hours or his employees hours.
2007-01-01 16:22:57 · update #1
It a little on the B.S. side. You can opt out to not have Taxes taken from your pay check. But, this only if you did not owe the previous year, and, even if you do, you may still owe at the end of the year, A LOT!!!! But, true, you could not file, but, sooner or later the IRS will figure it out and you would owe back Taxes. You could even be charged with Tax Evasion if they wanted to really push it. The rule of thumb in America; you can Fu*k anyone over and get away with it, but, NEVER Fu*k the IRS or Government!!!!!!
Say you get everything back every year. Then you can file "Exempt" in your Accounting Office at work and they not take out taxes. It a box you check on the form for this, or, it used to be there. But, at the end of the year you may still need to file your 1040/1040EZ and you may owe if you make too much. Normally say a people in high school or that work part time, may not ever owe anything. By claiming exempt at work then nothing taken out. You can call your local IRS and they may be able to tell you more in detail. I not sure the State allow for this.
2007-01-01 16:15:12 · answer #1 · answered by Snaglefritz 7 · 0⤊ 1⤋
According to the tax code, if you're breathing, you're going to pay taxes. When your dead, the only tax you'll pay is an estate tax, then yer dun.
W-4's are optional. If you don't fill one out, your employer is required to withhold income taxes as if you had filled one out claiming "single with zero exemptions", the maximum.
You can claim exemption from withholding on your W-4, even fraudulantly, and you're not very likely to ever be penalized, but this in no way exempts you from paying income taxes.
When tax time comes, your employer is going to send the IRS a copy of your W-2, and the IRS will then expect you to file a claim against it. If they find that you owe, you will pay what you owe plus a considerable penalty.
(If you never fill out a W-4, and you never fill out a 1040, and you never hear a wink from the IRS, it's because you're paying too much in taxes. Your employer is deducting more than you owe and you've opted to give up your refund by not filing. The IRS will never penalize you for paying too much.)
2007-01-02 04:33:47 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Claim yourself on your W-4. Doesn't mean they won't take out taxes just means they will take out less. Most people don't realize they are giving the government an interest free loan. Check the IRS site at IRS.gov to find out the exact rules since they change every year.
If you do not pay they will try several things like garnishing your wages and filing a lien against you. And if you cannot pay they just put your account as "uncollectable" which keeps accruing penalty and interest. If you win money or are left an inheritance they will collect before you do.
2007-01-02 00:18:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋
There are plenty of people that are in jail because they tried that. You elected or had a chance to elect a representative. Pay your taxes on time or filed for your refund. You really don't want to challenge the IRS. They can get real testy about little things like not filing or business having employees and not paying their share.
2007-01-02 00:14:28 · answer #4 · answered by cece 4 · 2⤊ 0⤋
If you don't fill out a W-4, your employer must withhold as if you filled out zero allowances, which is the HIGHEST rate: you don't keep all your money each week.
As to the merchant friend who claims to now be exempt from taxes, I'd suggest you don't believe everything you hear.
2007-01-02 10:06:07 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
1/2 truths.....there is a way to keep all your money...just file exempt.....but you have to be qualified.....but the other side of the coin is you still have to file a return and pay any taxes due by April 15. If you don't you will be charged interest and penalties daily until all is paid....including interest and penalties.
2007-01-02 00:17:23 · answer #6 · answered by Anonymous · 0⤊ 1⤋
you can get out of paying taxes two ways... give up your American citizenship... or just vote republican, at least they will keep your taxes lower than tax and spend Democrats will...
2007-01-02 00:24:20 · answer #7 · answered by goodtimefriend 3 · 0⤊ 2⤋