TAX Question

JeffNights · 11-11-2003, 06:20 AM

Anybody ever file exempt then pay it back at the end of the year?

Since the Gov always owes me a refund, i was thinking i may try this. Why give the goverenment what is essentially a intrest free loan?

I broke it down to that the IRS overtaxes my paycheck every week by about 50 -70 bucks each week going by my previous returns....

So if you went ahead yourself and just put that money in a seperate acount(willpower) in the end i think you;d be ahead.

is this just early morining crazyness i'm spewing?

CraigSca · 11-11-2003, 06:25 AM

Why not just change the number of dependents (exemptions) on your W-4 (I think it's the W-4)? That way, you can be taking home the extra $ you're giving the government each week.

JPhillips · 11-11-2003, 06:29 AM

I may be wrong, but I think if you go exempt and then in effect are not exempt that you could be penalized for not sending in quarterly tax payments. Check on that before you go this route.

Buzzbee · 11-11-2003, 06:36 AM

It sounds like you need to work with your HR department to modify your withholding. You may be claiming more exemptions than you need, or the rates in their system may need tweaking. If I'm not mistaken, I believe Michigan has local taxes (Detroit, Lansing, Pontiac, and several others). They may be withholding local taxes when they shouldn't be, or you may not be paying them when you should. My first call would be to the payroll department.

I believe your employer is required by law to withhold from your paycheck. I believe they are also obligated to investigate any suspicious W-4's, like if you tried to claim 50 exemptions, they would most likely ask you why. While it may sound like a grand idea to wait and pay all your taxes at the end of the year, I don't think that's gonna fly.

The Gubment doesn't like it when you mess with their money.

wbonnell · 11-11-2003, 07:08 AM

As a rule of thumb, I always try to break even or, perhaps, owe a little. That way, I keep more of money during the year; the IRS keeps enough of my money as it is.

11-11-2003, 06:29 AM	#3
JPhillips Hall Of Famer Join Date: Nov 2002 Location: Newburgh, NY	I may be wrong, but I think if you go exempt and then in effect are not exempt that you could be penalized for not sending in quarterly tax payments. Check on that before you go this route. __________________ To love someone is to strive to accept that person exactly the way he or she is, right here and now.. - Mr. Rogers

11-11-2003, 06:36 AM	#4
Buzzbee College Starter Join Date: Jun 2002	It sounds like you need to work with your HR department to modify your withholding. You may be claiming more exemptions than you need, or the rates in their system may need tweaking. If I'm not mistaken, I believe Michigan has local taxes (Detroit, Lansing, Pontiac, and several others). They may be withholding local taxes when they shouldn't be, or you may not be paying them when you should. My first call would be to the payroll department. I believe your employer is required by law to withhold from your paycheck. I believe they are also obligated to investigate any suspicious W-4's, like if you tried to claim 50 exemptions, they would most likely ask you why. While it may sound like a grand idea to wait and pay all your taxes at the end of the year, I don't think that's gonna fly. The Gubment doesn't like it when you mess with their money. __________________ Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it. - Lou Holtz Last edited by Buzzbee : 11-11-2003 at 06:37 AM.

11-11-2003, 06:25 AM	#2
CraigSca Pro Starter Join Date: Jul 2001 Location: Not Delaware - hurray!	Why not just change the number of dependents (exemptions) on your W-4 (I think it's the W-4)? That way, you can be taking home the extra $ you're giving the government each week.

11-11-2003, 07:08 AM	#5
wbonnell College Prospect Join Date: Oct 2000 Location: Round Rock TX	As a rule of thumb, I always try to break even or, perhaps, owe a little. That way, I keep more of money during the year; the IRS keeps enough of my money as it is.

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