My boss didn't withheld any federal tax on my check?

Question

I told my boss to take the min. amount on my check because before he was taking almost 80.00 per week,and at my old job my boss told me "i can take more money and you will recieve more, or i can't take less and recieve less,so I told my new boss to take only the min amount of taxes ,now my account is telling my i have to pay @ 4000.00 back to the I.R.S, I spoke to my boss and he brought that up about what i told him to only take out the min amount,I didn't know this was going to happend,I NEED HELP. OR ADVICE.

Answer 1

You don't have any option, you must pay your taxes. You tried to dodge the system and wound up screwing yourself.

File a proper W-4 with your job to prevent this from happening next year.

BTW, $80 per week in withholding would have just about zeroed you out at tax time. That was the proper withholding amount -- $80 per week x 52 weeks = $4,160. You would have had a $160 refund instead of a bill for $4,000.

Answer 2

You have to pay taxes, so you will be responsible for the $4000. The IRS can set you up on a repayment plan. I would immediately correct your paychecks, though, so that this doesn't happen next year. Your taxes are your responsibility, though, not your boss's, but most companies take out the correct amount, and usually have someone on staff who is well versed on payroll deductions.

Answer 3

well.. you're kind of screwed (sorry)

the money is taken from you one way or another, either in bits through your paycheck, or a lump during tax time. next year try and guess what you will be paying and tell him to take out that amount (divided by your paychecks).

there is a difference between the minimum amount your employer can take out by law and the the minimum amount to take out so you won't have to pay taxes at the end. but you have to do that on your own, your boss can't help you out.. try a financial planner!

Answer 4

It sounds like your boss raised your exemptions high enough that you didn't have any weekly withholdings. But this doesn't mean that you don't owe any taxes. Because you didn't pay anything from your weekly paychecks, you must now pay the IRS the entire sum that you owe for the year. You will not be able to get out of it.

Answer 5

Step #1 is going to be to put yourself on a payment plan with the IRS...they're actually pretty flexible as long as they know you want to pay the bill.

Step #2 is to fill out a W4 with your employer...If you answer all of the questions honestly, you're likely to have the appropriate amount withheld.

Answer 6

You'll have to pay what you owe, but if you can't pay it all at once, the IRS will set up a payment plan for you to pay it off. You'll pay interest, of course.

Make sure you change the amount withheld so you're not in this same situation next year.

Answer 7

If this amount is a hardship, then the IRS will work with you. You have to demonstrate that you don't have the cash on hand to pay in full. You must pay what you owe, but it can be payed by installments

Answer 8

Looks like you have some taxes to pay!
Your employer should stick with the guidlines for setting up your withholding. Typlically you'd claim '0'.

Answer 9

claiming 0 will take the most out of your check, but you will get a refund. The more you claim at work, the less $ will be taken out of your check. But you will always owe taxes.

One more reason the Fair Tax Bill would be great for this country.

Answer 10

there is nothing you can do now but pay it. you need to contact the irs and see what you can do to set up payments. but check the interest and penalty fee's as it maybe better to take out a loan.