How to not let the IRS not withhold your federal tax? I want to pay later?
On W4 looks like I can claim 10? For some reason with our income even we claim 10 they still withhheld like $8K and I hate to wait for one or two thousands when I filed our return.
- Coffee DrinkerLv 71 month agoFavorite Answer
The IRS recently released an all new W4 form which does away with the idea of withholding allowances and just has you list the amounts of credits you think you'll receive and other items as applicable.You are not required to submit a new W4 under the new format but I don't believe you are allowed to make changes to your existing W4 without jumping to the new format.
You could simply list dependents and/or additional deductions on this new form and it would reduce (or eliminate) the amount withheld from your paychecks.
However you sign the form under penalty of perjury to declare that the form is complete, true and correct to the best of your knowledge. So don't go crazy.
If you owe more than 10% of your tax liability and/or more than $1,000 when you file you will be penalized for under-withholding and if it happens more than once or to an extreme degree (like having $0 withheld for $8,000 tax liability) the IRS will send your employer a lock letter instructing them to ignore your W4 and withhold at the rate the IRS decides.
- Christin KLv 71 month ago
Fill out and file a W4E form from your employer--the E stands for EXEMPT. You do not have to have Federal tax withheld from your pay. BUT--if you do not pay the tax when it comes due in April, you'll be in a difficult situation. So consider carefully.
- Max HooplaLv 71 month ago
You can adjust your W-4 to come out even in April 2021
- STEVEN FLv 71 month ago
The IRS NEVER withholds ANYTHING.
Your employer withholds based on your W-4 and remits to the IRS. The IRS never even sees the W-4.
You need to visit the IRS webpage and use the withholding estimator to figure out how to complete a new W-4 that comes closer to the correct withholding amount.
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- JudyLv 71 month ago
What was the 8000 withheld for? If you claim 19 on your W-4 ig only affects federal income tax. They still take out for things like social security and medicare. But it's illegal to claim something on your W-4 that you're not entitled to, so if your income is so high that you owe that much, then you can't legally stop the withholding and just 'pay later'. if you ended up with a huge refund, fill out one of the new w-4 forms.
- SlickterpLv 71 month ago
The IRS doe snot withhold your taxes, your employer does. The only way to avoid this is to put exempt on your W4, or put such a high number of allowances nothing is withheld. The only way you can do texempt is if you are in fact actually exempt.
IF you owe more than $1000 when you file penalties start kicking in. For $8K, you'd be paying at least $500 in penalties.
If you want o break even, just bump your W4 up an allowance or two. Done.
- EvaLv 71 month ago
You must be very high income if they still withheld that much in federal income tax with 10 exemptions. I'd be suspicious that your payroll dept. did not put that many on their system. Note that Social Security (FICA) and Medicare withholding are not refundable unless you work multiple jobs and go over the earnings limitation (SS only).
- KaleyKLv 71 month ago
You are in full control of your tax payments via your W4 (or quarterly tax payments). In general you need to pay 90% of your annual tax liability by the end of the calendar year. Adjust your W4 (or quarterly payments) accordingly.