A few different people at work (including my old boss) have told me that you can claim 9 allowances on your w-4 for a couple of months without being penalized by the IRS. Is that true?
2007-07-28 11:58:14 · 5 answers · asked by El G 2 in Business & Finance ➔ Taxes ➔ United States
1. The IRS treats all withholding as if it were withheld evenly during the year. Any penalties are computed based on the TOTAL withholding, not when it is withheld.
2. Employers were once required to routinely report any W-4 claiming 10 or more exemptions to the IRS. This is no longer true. The IRS only sees your W-4 if they ask for a copy. Unless you owe a substantial amount at the end of the year, they are not likely to ask.
3. If claiming 15 on your W-4 the entire year resulted in your withholding matching your actual taxes, you could do so and the IRS would never notice.
2007-07-28 13:16:37 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
The name of the game with the IRS is to break even. Large refunds means you are giving the IRS an interest free loan. If you get a refund of $520 and you are paid weekly, that first paycheck at the beginning of the year had $10 to much withheld. You file your return on April 15th, get the refund on June 30th, IRS had your money from 6-18 months. Yikes!! Yes, you can claim more than the true number of exemptions, however, be careful that you do no underwithheld because IRS will come after you wanting more money in penalties and interest.
2007-07-28 12:12:34 · answer #2 · answered by IRENE THE BOOKIE 3 · 1⤊ 0⤋
the more dependents you claim the less the take out in taxes , you wont be penalized , but the end of the year you will have to pay in , if you have no deductions , it will be alot . if you are single claim single and 0 . you will get some money back , single and 1 , you will be about even .... single and claim 9 you may owe over $1000 or more if you have no deductions
2007-07-28 12:12:09 · answer #3 · answered by jon_wayne89 5 · 1⤊ 0⤋
Sort of, and it might be. The rule is that you have to have paid in most of what you owe for the year, through the year. If you end up owing more than $1000 when you file, you will likely be penalized. But if you end up owing less than $1000, or if you still end up with a refund coming, then you'd be OK.
2007-07-28 12:05:26 · answer #4 · answered by Judy 7 · 2⤊ 0⤋
if you know what you paid in taxes last year, and nothing changed, you can have them(in the payroll office) put you down as "single 0" in jan. then in july, change it to 9 dependents. you get your taxes paid in yhe first six months, and a pay raise the last six. i did it every year.
2007-07-28 12:16:44 · answer #5 · answered by gen. patton 4 · 0⤊ 1⤋