I am going overseas to work. I do not want Federal Taxes withdrawn from my paycheck at all. I am aware of the $84,000 non-taxable but I don't want taxes taken out after I earn that. I WILL settle what taxes are due in April. Is there a legal way to do this?
2007-08-09 18:19:39 · 9 answers · asked by Brian G 1 in Business & Finance ➔ Taxes ➔ United States
If the company you're going to work for is US based they'll have to withhold federal tax from your paycheck, if they aren't US based then they won't. You will be reponsible for your federal tax. I am assuming that you are talking about the foreign income exclusion, which I have attached here. I have also attached a link about us citizens working abroad.
2007-08-10 04:26:59 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you are being paid by a US employer there's no legal way to avoid withholding of taxes. Taxes are due as the income is earned, not on the filing deadline date.
If you are being paid by a foreign employer not subject to the US tax code then US taxes will not be withheld from your wages.
In either case you will be subject to whatever tax withholding system exists in the foreign country where you will be working.
If you are subject to US withholding you will need to do some careful advance planning to ensure that the proper amount of tax is withheld. This is especially true if you are eligible for the Foreign Earned Income Exclusion. The rules and timelines are complicated and if you get it wrong you may be either severely over or under withheld at the end of the year.
For this reason you should consult with a qualified tax professional with experience in foreign-sourced income.
2007-08-10 00:23:06 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You can claim any amount of exemptions on a W-4 but do not claim that you are exempt from taxes. These are 2 different things. This is illegal. Ther are more rules that apply to make this income tax exempt and if you don't claim the correct percentage of taxes you can owe additional taxes for penalties. Do research on the IRS.gov website or call a tax office (such as H&R) and ask them the tax consequences. There is no charge for that.
2007-08-09 18:44:32 · answer #3 · answered by Tax Lady 1 · 0⤊ 0⤋
Nope! opposite to straightforward false impression, taxes are due with the aid of fact the money is earned, no longer on the submitting ultimate date. it somewhat is why taxes are withheld out of your wages and why self-employed persons would desire to make quarterly predicted tax funds. in case you owe extra effective than $a million,000 at submitting time you would be dealing with effects for underpayment of taxes. If the quantity is significant, the IRS will probably request a replica of your W-4 out of your enterprise. in the event that they settle on which you filed a fraudulent W-4 they are going to tack on a $500 fraud penalty. The IRS additionally will probably undertaking a lock letter on your enterprise, forcing withholding at a point desperate by using the IRS regardless of what you are able to legally declare. in maximum situations, which would be single + 0 or a million allowance.
2016-10-09 21:58:06 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It's pretty simple. Taxes are based on the ability to pay. The gov wants you to pay as you go so that you have it at the end of the year. Since many don't, there are laws so that when you file you will pay penalties for not paying timely or as you earn. I don't know all the particulars, but you can bet on this.
2007-08-09 22:02:31 · answer #5 · answered by towanda 7 · 0⤊ 0⤋
Sure you can do that, but you will have to pay penalties and interest at tax time if you have to pay in total of $1000 or more-April. If you don't want taxes taken out of your checks, you can pay in quarterly estimated tax payments. As a matter of fact, my law you are required to do that if you are not having any taxes taken out of paychecks. Also, by law, if you are treated as an employee, your employer has to take out social security and medicare (7.65%), if you are treated as a contractor (1099 instead of W-2) then you have to pay the employer's part of soc sec and med and your part (15.3%), plus federal and state taxes in quarterly or you will have to pay penalties and interest and possibly more could take place.
2007-08-09 18:34:37 · answer #6 · answered by timzapasn 3 · 0⤊ 1⤋
Claim exempt on your W9 paperwork when you start work for the company or go to the accounting Dept. and ask them to change your filing status. You can claim anything you want to on your status as long as you tell the truth and pay the appropriate tax at the end of the year. Much the same as declaring 9 dependents on your W9 and then claiming 1 on your tax form.
2007-08-09 18:27:42 · answer #7 · answered by Anonymous · 0⤊ 3⤋
Not unless you expect to owe a total less than $1000.
2007-08-09 18:25:32 · answer #8 · answered by Judy 7 · 1⤊ 0⤋
No, do it or go to jail.
2007-08-09 18:22:39 · answer #9 · answered by hoa m 2 · 1⤊ 2⤋