I'll be a SA at a BB this summer. I was wondering is there any way to have them not withhold federal income taxes?
I'll probably make about 12k pretax for the summer, and this being my only job for the year, I will likely owe little to no taxes correct?
Why get it back later when I can just keep it now?
If i do end up owing any taxes, I can just send a check to the government with no penalty correct?
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FROM THE IRS ON WITHHOLDING PENALTIES Penalty for Underpayment of Estimated Tax
Generally, most taxpayers will have paid enough tax to avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller.
last year i owed 0 taxes. does this mean i will have no penalty and can just send a check to the govt during tax time ? this would be ideal.
any help is appreciated.
Estimated tax not required You do not have to pay estimated tax for 2009 if you meet all three of the following conditions.
You have no tax liability for 2008 You were a US citizen or resident for the whole year Your 2008 tax year covered a 12 month period
basically this sounds like if i withhold no tax, i can just pay the 10% on the w/e 4k 5k after credits to the government with no penalty. why the fuck would i let them withhold 25%?
ALSO NYC state tax. i am going to owe virtually nothing. ($7000 deduction on 12k income = couple hundred bucks in NYC state tax owed.
can i have them not withhold anything and just cut them a check at the end of the summer instead of withholding 7%
these both seem like really good ideas.
You can opt for no federal withholding on your W-4 but:
"I claim exemption from withholding for 2009, and I certify that I meet both of the following conditions for exemption.
Last year I had a right to a refund of all federal income tax withheld because I had no tax liability and
This year I expect a refund of all federal income tax withheld because I expect to have no tax liability."
12k gross, you will have a federal tax liability unless you're hella creative with the deductions; assuming that your parents can claim you as dependent (note its a question of can not do), you get a $5450 std. deduction, leaving you with ~6-8k taxable income. So, on a strict letter-of-the-law interpretation, you shouldn't exempt from federal withholding...
NYS tax, depending on your firm's payroll system you can jack up the # of exemptions or maybe even get exemption from withholding. I know at my current job payroll is outsourced and I can't fully exempt from NYS withholding but I can tweak the # of exemptions. I wouldn't advise trying this either, but everyone has different risk tolerances...
i know i shouldnt and will owe taxes. i am saying that i will not qualify for the PENALTY correct? and thus can just pay the taxes by check when i file my taxes with no penalty.
same goes for NY state tax.
i think i am going to try and not have anythign withheld from either, and pay about $500 in taxes i owe for the 5k when i file my taxes in 2010. and pay about $300 to NY state when i file their form.
any thoughts? bump
Help: So I owed my state gvt taxes this year....which I paid. How should I fill out my tax forms this summer in order to have the least amount of taxes withdrawn from my checks?
Isn't there some new legislation allowing for lower federal tax witholdings?
bump
bump. anyone think this is a good idea ? not have any federal or state taxes withheld- only pay medicare/ss
how many exemptions would you have to put to pay the right amount of taxes rather than too much?
Minimum Tax withholding SA (Originally Posted: 04/01/2009)
My accountant told me to "tell HR or payroll" to withhold the minimum taxes possible. The 13-14k from the summer will be my only earned income, and at a normal withholding they will probably take $3000 or something in taxes for about $800 i will owe.
Can you just tell payroll to do this , or do you have to specify something on the W4?
Thanks
Every job I've ever had it has just been a box you check on your W4
well there is usually a box for withhold nothing. im not sure if this is legal. is there anyway to get them to withhold 10% or w/e
But I assume if you end up paying too little tax, you still need to pay back next April when you file for tax return, right?
ideally i would just like to cut a check to the govt in april for what i owe. however there is some type of penalty involved with this.
Yeah, there's a way. On your pay level, you can probably get away with claiming you have a right to have nothing withheld, and then there an option on the W4 for additional amount, if any, you want withheld from each paycheck. I'd just go with withhold nothing as it is reasonable to say your low pay may couple with sufficient deductions that you owe nothing, and at a minimum you'll earn return on that capital between now and april 4, which is always nice. if you want to have a little withheld though, just check for nothing and then in what you think is appropriate.
found it
http://www.irs.gov/pub/irs-pdf/p505.pdf
page 12 "part year method" perfect
is it possible to get out of paying NYC city taxes if you are a summer with a permanent residence out of state, yet a summer residence in nyc?
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