What do I do about the IRS?

Question

I claimed 9 on my job all year and I don't have any dependents. My friend told me that it would be ok to do that, and that way I will not be charged federal taxes. Now, I was told by someone else that when I file my income taxes I will owe the IRS. I am a real dummy when it comes to tax stuff. What will happen to me? Please help.

Answer 1

You'll probably have to pay. What your friend was saying was that by filing 9 on your W-4, they wouldn't take out taxes during the year and you'd have to pay them when you file instead. Depending on how much you owe, you might also have to pay a penalty for not having taxes withheld during the year.

Didn't you think something sounded a little strange about this? If it was that easy to get out of paying taxes, wouldn't everybody do it?

I hope you've learned something about listening to friends. And honestly, a lot of the answers here on Yahoo aren't correct either, so don't depend on those.

When you prepare your taxes, there will be a number "total tax" at the end. You'll have to pay that. If you can't pay it all at once, then send what you can and they'll set up a payment plan (with interest) for the rest. File on time though - if you don't file because you don't have the money, you'll owe even more in penalties.

Change your W-4 as soon as possible so this doesn't happen again next year.

Answer 2

The worst thing to do would be to ignore it. File the return and enter in to an installment agreement to pay off the debt. They will charge you interest, but the rate isn't that bad.

....and change your W4 for 2007 ASAP.

Answer 3

you have to pay all of the taxes you were supposed to pay all along, when you file the return with the correct info. then you change the w-4 at work asap. what your friend is doing is fraud, and it will catch up to her eventually.

Answer 4

yes,
you will owe taxes,maybe you could see if you can pay it off in payments