what do you mean by "normal"? are you actually married? and are you saying you have 9 kids? or 9 deductions?

I already have a 401K maxed out. I'm wanting to defer paying my taxes until Apr 15th, so I can earn interest on it during the year.

when you say you believe one can claim EXEMPT once or twice a year, are you saying for like just one pay period, such as when I get a windfall (bonus, lots of OT, holiday pay, etc?)

 

i think when I and others claim "dependents" we are actually talking about "exemptions" on the W-4.

You claim dependents on the 1040...lying on that is a NO-NO.

I don't think you can claim exempt once a year. regardless, you'll still have to pay those taxes in April. there is no way to truly defer the bulk of your taxes as you must pay them quarterly.

The Alternative Minimum Tax only affects those with a lot of deductions. While everyone should pay their fair share, the AMT rules should be modified.

 

tritium_pie, I am not a tax professional so I am not an expert on this subject, but I do know that self-employed people are required to pay estimated taxes quarterly throughout the year and failing to do so can result in penalties.

The things that joeking mentioned in the other thread are very shady and not something I would recommend doing. If a car is only worth $200 then that is all you're allowed to deduct. Common sense says you can't buy a car that is only worth $200, donate it to charity, and then deduct $6500. He's going to be sorry he did that if the IRS ever finds out not to mention he's screwing the gov't out of tax money which only shifts more of the burden to those of us who are honest.

 

yep, that car idea is a plain tax scam that will land you in the slammer. the IRS isn't that dumb. I DO NOT recommend you do that.

I think the best idea is to claim exemptions on the W-2 form. That way, the amount of taxes withheld is closer to what the actuals will be. That isn't cheating or wrong as the government gets what you owe them each quarter.

Remember, if you work 2 jobs, you need to withold an amount equal to what your current bracket is (if 28%, hold 28%) from your first job. The US tax system is progressive, and the tax rates increase as your income goes up. If you don't do this type of witholding on your second job, you will owe a lot in April as the actual witholding will be a lower % than what you will owe on the income from the second job.

 

Tritium, I am a tax professional and will answer your question. If you claim exempt on your W-4 you give to your employer, (or claim more than 14 exemptions) they are required to send it to the IRS. The IRS will look up your return for the prior year to see if you paid any tax. If you did (I mean paid ANY, not just when you sent in your return) they will either notify your employer to ignore your W-4 and withhold as though you are single with no exemptions, or will write you and ask you why you think you are exempt. (try to answer that one)
Also if you should have had withholding, but for some reason got away without having any withheld, then you will likely owe the IRS an underpayment penalty on April 15, along with the tax that you owe.
Your best bet is to follow the instructions on the W-4 (downloadable on www.ustreas.gov, I think) and figure out the proper number of exemptions you should be claiming based on income, deductions and dependents. You want to wind up at the end of the year where you don't owe the IRS a nickle, and they don't owe you a nickle either.
BTW, self employed persons pay taxes quarterly with a 1040-ES form. Employees pay through withholding based on the W-4 filed with your employer. Withholding is assumed to be withheld equally throughout the year.

 

Yeah, that's what I meant.

On my W-4, I claim 3 exemptions so I have less taxes taken out of each paycheck.