owe back taxes. I filled out a new w4 and I just claimed myself. Will this help? I didnt claim my daughter. I just got a raise and will be making 4500.00 a month. My husband makes 3600.00 monthly, he claims single no dependents and they tax the hell out of him, but we both need to overpay so we can get this tax bill knocked out. Will this help? thanks
2007-10-15 06:29:46 · 16 answers · asked by becca c 2 in Business & Finance ➔ Taxes ➔ United States
I realize that paying more will not pay off my tax bill. I just want to make sure I am paying more in, so at the end of the year, we are ahead and not owing anything because I did not do the deduction right. That is how I got us into this mess. thanks
2007-10-15 06:38:44 · update #1
I am currently on a payment plan with the irs I pay them 100.00 a month
2007-10-15 08:02:13 · update #2
Changing your with holding # will definately help out. But lets say you owe $1200 in back taxes........you can actually have your employer hold back $100 per month and leave your dependents the same. I'm not sure if you are on salary or not, but if you aren't and your wages change every month, this is a better way to control how much extra you are putting towards your debt. It's a set amount vs being based on your wages.
The spot on the W-4 is just below the box where you put the number that you claim. Once your bill is paid up, just put it back to zero for extra withholding.
You can also contact the IRS and set up payments directly to them. Sometimes I think they like doing it that way because instead of waiting until you file your taxes next year, they will be getting deposits made towards your debt as you go. ALSO.......it'll decrease the amount in penalties and interest. They charge you for being late with your taxes!!
2007-10-15 06:37:12 · answer #1 · answered by Cate 4 · 0⤊ 1⤋
First, the W-4 does not cause the IRS to take money out of your check. The W-4 causes the employer to take out taxes and send them to the IRS. The IRS only taxes out money if there is a garnishment for unpaid past taxes.
Second, claiming fewer allowances/exemptions on your W-4 will result in more taxes being taken out.
Third, you can elect on line 6 of the W-4 to have an additional amount, that you specified, withheld from each paycheck. The easiest option is to keep your allowances/exemptions unchanged and just request an increase on line 6 of the W-4 of however much more you need withheld.
2007-10-15 14:43:20 · answer #2 · answered by StephenWeinstein 7 · 0⤊ 0⤋
What you're trying to do isn't going to help you with your tax bill. You need to set up a payment plan with the IRS and pay them directly that way. The monies withheld from your pay are not accounted for until you file your tax return. It will take far too long to sort things out with the IRS this way. They will likely resort to a wage attachment by the time you can file any tax returns.
In your case, you want your withholdings to as close to your tax liability as possible. This will keep your refund to a minimum. You want to do it that way because any refund you have coming to you WILL be captured by the IRS and applied to your debt. That will be ON TOP OF anything that you are paying them monthly on the payment plan.
2007-10-15 14:09:23 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Wow, you guys are getting soaked for tax withholding, aren't you?
What you're doing is giving tax money to your employer, not to the IRS. The IRS will recognize it at the end of the year when you file your returns, not before. That's because withholding is assumed to be for current taxes.
You would be better off changing your W-4s to what they should be (married with dependants), have LESS taken out of your paychecks, and the extra money you get should go into tax payments directly to the IRS for your back taxes. This way you can avoid that nasty interest they charge you.
2007-10-15 18:35:56 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Having the IRS take more money out of your paycheck will not pay for back taxes. You really need to consult a tax advisor to help you reconcile your debt with the IRS.
Also you should be claiming your daughter as a dependant.
2007-10-15 13:33:51 · answer #5 · answered by Kleineganz 5 · 1⤊ 0⤋
If you declare zero, then the maximum will be taken out of your paycheck. However, this just means you'll get a refund at the end of the year, which you'll send to them, of course.
The extra money taken out of your check will not go directly to the IRS to pay off your tax bill--unless, of course, you have some sort of payment schedule set up with them.
2007-10-15 13:38:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Line 6 of your W-4 has a space where you can enter how much extra taxes you want deducted per pay.
Fill out your W-4 normally, and put the money in that spot. Don't mess with how many deductions you have.
Link to W-4 form below.
-->Adam
2007-10-15 13:33:14 · answer #7 · answered by great_and_mighty_adam_levine 4 · 1⤊ 1⤋
you do not have to even claim yourself. you can declare 0 dependants and you will pay even more taxes up front. this is a smart move a lot of people do not use. people who do it usually get a bigger refund in april. also you can have extra money set aside from your paycheck that would also help pay off debts. call the irs they will work with you they want you money not to put you in jail
2007-10-15 13:35:21 · answer #8 · answered by froggy_logic 6 · 0⤊ 1⤋
visit IRS website: www.irs.gov and read the information on W-4. The form has a worksheet you can fill out to give you an idea how exemption you should claim.
2007-10-15 22:13:10 · answer #9 · answered by Ms. Angel.. 7 · 0⤊ 0⤋
There is a line on the W-4 to request that additional money be taken out - fill out that line, and they'll take the extra.
2007-10-15 14:08:03 · answer #10 · answered by Judy 7 · 0⤊ 0⤋