I live check to check, and i only plan to do this to like 4 or 5 checks just so i can have some money saved up, that way I am not broke a week before my next check... so tax time will the money that was not taken out, be taken out of my tax return ???
2007-07-02 06:41:20 · 4 answers · asked by omarortiz99 1 in Business & Finance ➔ Taxes ➔ United States
You will owe the money when you file your return next year. Either your refund will be smaller, or you may even end up owing the government. You need to speak with your payroll/ HR department. Many companies will not do this because they can face penalties as well.
2007-07-02 06:50:25 · answer #1 · answered by rebel g 4 · 0⤊ 0⤋
Sorry, you can't do that. Period. An employer is NOT required to honor a claim for EXEMPT status if they believe or suspect it to be fraudulent. And YOU can be subject to a $500 administrative penalty for EACH fraudulent Form W-4 that you file with your employer. Think about what THAT will do to your finances.
If you are getting a large refund at tax time you probably need to adjust your withholding allowances so that less tax is withheld from each paycheck. That's completely legal and is the smart way to proceed. If you are a single taxpayer, have only one job, have no dependents, and do not itemize you can legally claim up to 2 witholding allowances on your Form W-4. This will result in a tiny refund or possibly a tiny tax bill at filing time. You'll normally be within about $50 of even money with the IRS that way. That will give you more money in each paycheck throughout the year while keeping you in the good graces of the IRS and your employer.
2007-07-02 07:06:06 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Not sure what you mean by "exempting" checks from federal taxes. You do not have the right to do that - doing it is illegal.
If you don't report all of your income, and you get caught, you'll be charged not only the taxes you would have owed in the first place, plus interest, but also penalties.
If you do that, you're breaking the law by filing a false tax return. You can be prosecuted for that.
2007-07-02 07:41:25 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
If you owe it. Someone can claim 0 on their taxes and have the max taken out and then still owe taxes if they didn't report some other form of income.
It all boils down to will you owe more than was withheld from you for the entire year. Whatever the difference is will either be refunded if you overpaid or due if you underpaid.
2007-07-02 06:49:43 · answer #4 · answered by Michelle H 4 · 0⤊ 1⤋