I switched my tax papers at work so I was exempt. I needed the extra money for tuition. At the time, I was told I could switch it back for the following paycheck. I went to switch it back today and the lady in charge said that from now on they can only change it twice a year, July and January. I don't want to have to pay a lot in taxes, is there any law or anything about this? And if it really isnt possible to change, if I take the money that would have been taken out and save it in an account, will that be about how much I will owe in taxes???? I can't afford to pay a ton in taxes, please help!
2007-08-21 13:30:21 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I am only 19, this is the first year I have to do taxes. The $200 extra made it so I had enough to pay tution without loans. I was told by a few people that I could switch it and switch it back with no problems.... It's not something I plan on doing frequently or ever again for that matter, it was just once so I could pay all my tuition.
2007-08-21 15:51:58 · update #1
I believe that you can change withholding any time you want.
Just a note. you can only claim exempt if you had no tax liability in the previous year and expect to have no tax liability this year. (read the statement above your signature)
If you don't meet these qualifications, you committed perjury.
2007-08-21 13:53:50 · answer #1 · answered by Mark S 5 · 1⤊ 0⤋
I think you can change any time you want - your company is just telling you that they are sick of spending time on your changes.
You can just fill out the forms and turn it in - I would argue they are obliged to follow through, but this is not necessarily going to make you any more popular at work. Twice a year SHOULD be enough changes. It's not designed to be a mechanism to crank out maximum dollars one check, then put away max dollars the next.
You mean you can't afford to have a ton withheld? Withholding does not affect the final tax bill, except that if not enough is withheld, you can be levied fines and penalties.
If you can't afford the withholding, I don't know how you will come up with the cash on tax day.
2007-08-21 15:00:02 · answer #2 · answered by heart_and_troll 5 · 0⤊ 0⤋
My guess is the lady in charge has other things to do than screw around with changing your exemptions. Your poor planning created extra work for her.
2007-08-21 14:59:54 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋