Can I file exempt for the last two months of the year and not get in big trouble? I have made over $100,000 so far this year and paid over $28K in total taxes. Will I get myself into more trouble than it's worth by changing my W-4 to show exempt for these last two months? I want to not have too big of a pay cut for many reasons, mainly because of debt payment plans I recently set up counting on my payscale staying where it was at the time.
2007-11-17 12:20:46 · 6 answers · asked by onlyinemerica 1 in Business & Finance ➔ Taxes ➔ United States
Change your W-4 to up to 9 allowances, don't go over that number because that is sometimes transmitted to the IRS and you don't want to be flagged.
If you are having tax-deferred amounts taken out of your pay on an annualized basis, such as a 401k or 457, you are allowed to make one change a year. You could tell your employer to discontinue those payments for the rest of the year, and then you could reinstate them in 2008. That would boost your take-home.
Sorry for the demotion, but some good news is that you have gone over the limit for Social Security taxes and the 6.2% will not be deducted from your remaining paychecks this year.
2007-11-17 21:41:06 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
You can only legally file exempt if you don't expect to have any tax liability for the current year, clearly not your situation. But you can increase your allowances on your W-4 so not much if anything will be taken out for the rest of the year. It sounds like you'll have a large refund coming, so file as soon as you have all of your paperwork. File electronically and have your refund direct deposited, and you should get in 2 weeks or less from the time you file.
2007-11-17 21:12:33 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
There are two conditions in which you may claim "exempt" on your W4 Form: (1) If you expect to owe no Federal income tax for the current year, or (2) if you actually owed no federal tax forthe previous tax year. Since you will be owing taxes this year, you may not claim exempt. You may, however, jack up the number of withholding allowances right through the roof.
2007-11-17 20:25:26 · answer #3 · answered by Anonymous · 0⤊ 0⤋
In the US. You can change your w-4 filing status, but all that affects is what your current employer will take out of your current paychecks.
When you file your taxes in April, you will take the deductions the law allows. What you had on your W-4 doesn't change what you owe the IRS for taxes.
2007-11-17 20:25:03 · answer #4 · answered by Dan H 7 · 0⤊ 0⤋
You can't legally claim EXEMPT, but you can jack your withholding allowances high enough that little or no more tax is withheld. Go here to help figure out how many to claim: http://www.paycheckcity.com
2007-11-17 20:26:38 · answer #5 · answered by Bostonian In MO 7 · 2⤊ 0⤋
I really dont think that two months will make a big difference but maybe you should talk to yuor payroll department or a tax preparer.
2007-11-17 20:23:30 · answer #6 · answered by boxergirl16 3 · 0⤊ 0⤋