I was wondering what could happen when I claim 10 all year (and withhold $80 per month additional)? I do not have 10 dependant's, in fact I have don't have any. However, I file and pay what I owe every year. Is this fraud even though I pay it back?
2007-01-16 08:30:04 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yes I meant w-4's. At the end of the year I am totally honest and pay it back plus have $960 already set aside (from having $40 extra withheld every paycheck) to pay what I owe.
2007-01-16 08:48:59 · update #1
You mean W-4?
Yes you need to sign the statement that you are not lying.
2007-01-16 08:34:15 · answer #1 · answered by Whoa_Phat 4 · 0⤊ 0⤋
No it isn't. The tax withholding system in the US is on the honor system. It is up to you to tell your employer how much to withhold. The IRS really doesn't care how much you have withheld, however, if at the end of the year you do not have the lesser of 100% of your prior year tax, or 90% of your current year tax paid in either through withholding or estimated tax payments, they will hit you with underpayment penalties.
2007-01-16 16:43:57 · answer #2 · answered by jseah114 6 · 2⤊ 0⤋
You can claim as many as you want on your W-4. It just means less is withheld.
Just put the proper amount on your W-2 when you file your taxes.
2007-01-16 16:38:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I think it is a good idea. It gives you the use of your money all year, and then you can pay when your taxes are due.
2007-01-16 16:34:32 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No you can claim what you want but you will pay at end
2007-01-16 16:34:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No, as long as you file correctly, you may claim as many as you like.
2007-01-16 16:34:41 · answer #6 · answered by smartypants909 7 · 0⤊ 0⤋
uh YEA its fraud and you have to pay it ALL back WITH interest once you get caught.
2007-01-16 16:33:47 · answer #7 · answered by Anonymous · 0⤊ 1⤋