How do I file for zero taxes withheld on my W4 form (ie, get all of my gross income and pay later)?

Question

I want to receive my gross income and put in the bank and pay Uncle Sam in quarterly installments. What exactly do I need to fill out on my W4 form?

Answer 1

Sorry, you can't legally do that. You can only claim exempt status if you meet two tests:

1. You had $0 tax liability last year. That means that the total tax line on your tax return was $0.

2. You reasonably expect to have $0 in tax liability in the current year.

Filing a fraudulent claim of exempt status attracts a $500 penalty from the IRS. Additionally the IRS will then direct your employer how to withhold from your pay; you will not longer have a say in the matter.

Taxes are due when the income is earned, not when you file. Taxes on wages subject to withholding cannot be paid via estimated payments in Form 1040-ES, they must be withheld by the employer.

Answer 2

There are only two legal ways to do this.

1. Become an independent contractor. Then, you aren't subject to having taxes pulled from your check. You can also claim deductions that are job related directly rather than having to meet the over 2% of adjusted gross income rule. Note, that you are also responsible for all of your Social Security and Medicare taxes with this option where an employer will pay half the tax for employees. So, that tax will double.

2. If you didn't have a tax liability in the prior year, you are eligible for not having income taxes taken out while Social Security and Medicare still will be.

Answer 3

Legally, you can't. Filing exempt would mean that nothing would be withheld for taxes, but when you file exempt you declare under penalty of perjury that you do not expect to have any tax liability this year and didn't have any last year - that doesn't sound like your situation.

If you file your W-4 with a high number of allowances, little if anything would be withheld, but that's not legal to do either.

Why do you want to cause yourself extra paperwork filing quarterly?

In any case you wouldn't receive your gross, since social security and medicare would still be deducted.

Answer 4

Uncle Sam does not allow that. If you disagree, try it and see what happens to you.

As an employee, you are to claim the appropriate number of dependents which will result in an amount of income tax withheld which most closely matches your tax due at the end of the given fiscal year.

Answer 5

If you are employed at a regular job, your employer is obligated to take withholding. All you can do is change your exemptions to reduce the withholding.

If you want to pay taxes quarterly, work for yourself.

Answer 6

You can file tax exempt for federal income tax on your w4. You will still have to pay out social security and medicare...you cannot have those withheld as they are required taxes. I file tax exempt myself.
http://www.irs.gov/pub/irs-pdf/fw4.pdf Read Exemption from withholding and the Note below. Take note of the AND as opposed to OR with the part A and B on the note portion below the instructions.

Answer 7

You may be able to use this "article" which was easy to follow and confirm.
as (an outline ) along with constitution to possibly find out some information that may be useful to you- It HELPED in my situation, and revealed some information that i have asked time and time again,even have paid ......and just received the wrong information.; but confirm also with other souces if you have one. I have only been checking on items i was concerned about. Look at pg ,26 ,27, and 50.
We have to do our own homework to make sure we are not being mislead.........

Answer 8

You can't.