88lx5oh Posted September 14, 2009 Report Share Posted September 14, 2009 i heard this somewhere before.. your allowed to claim 11 or something like that twice a year and have a tax free paycheck.. only twice year legally without it bothering your tax return. i think this was even discussed here. is it true? more information please. next month i am gonna be getting a big check, basically 40 hour work week, plus a big overtime time, and a yearly bonus all on the same check. i remembered people talking about this and if its possible im gonna take advantage of it. Quote Link to comment Share on other sites More sharing options...
smokin5s Posted September 14, 2009 Report Share Posted September 14, 2009 chapter 11? isn't that bankrupsy? Quote Link to comment Share on other sites More sharing options...
BigZach Posted September 14, 2009 Report Share Posted September 14, 2009 chapter 11? isn't that bankrupsy? im pretty sure he is talking about what he claims on his taxes...since im a Advertising Contractor i learned to just pay a accountant so i dont go and fuck up my taxes......88lx5oh i will call her tomorrow and ask her about if that would benefit you. Quote Link to comment Share on other sites More sharing options...
Trouble Maker Posted September 14, 2009 Report Share Posted September 14, 2009 If that does in fact make you pay no taxes (right now) on your pay, you will still have to pay taxes on that in the end. Since this will be a very large check that's still a lot of taxes. That means unless the gov normally owes you that much in taxes at the end of the year, you will owe them. You could go somewhere in between. My understanding is that your checks get taxes withheld something like if you made that much all year. So if you have one big fatty check, you get withheld a lot on that check relative to what you actually end up owning for that check. So if it's a once a year thing, and your allowed to do it (per gov rules and HR rules) I would go somewhere in between getting withheld normally (too much on a large check) and nothing. Just my personal opinion. You could also ask the HR department if you can get any kind of answer out of them.... they should know the laws on this stuff. Quote Link to comment Share on other sites More sharing options...
Akula Posted September 14, 2009 Report Share Posted September 14, 2009 Bonuses are taxed at bonus rates (40%). Basically you don't have to pay taxes until April 15th, your employer doesn't have to withhold the tax if you fill out your w2 so with huge exemptions. But you better have a pile o money in the bank come April. So, if you want to go file a new W2, that is perfectly legal. You will get screwed in the end, but you won't have broken any laws. Quote Link to comment Share on other sites More sharing options...
AudiOn19s Posted September 14, 2009 Report Share Posted September 14, 2009 I used to do this once a year when we got our bouns. The way I understand it from our HR department. The Taxes witheld are figured each pay check. When you get an exceptionally large check containing a bonus or the like it could force that paycheck's tax calculation to be figured based upon a different tax bracket assuming that what you're getting paid is actually a regular pay and pulling much more taxes out up front. By claiming as many dependencies as possible you lower the taxes taken on that particular check and get more of your money up front. When you go back to figure your taxes at the end of the year you'll still have to pay tax on that money though....just not as much as would have been pulled out initially without changing witholdings. I know I did a piss poor job of explaining that but hopefully it makes sense. Quote Link to comment Share on other sites More sharing options...
BloodRed Posted September 14, 2009 Report Share Posted September 14, 2009 Yes you can do it, and you are not going to break any laws. All it is going to do is raise the chance you will owe federal and state taxes at the end of the year, or just lower the amount of your refund. I know a lot of people that have no federal or state taxes withheld from there paychecks. They have just learned to set back the money (earn interest on it) and pay it all when they file there taxes at the end of the year. No you are not going to screw yourself on taxes, you just have to make sure you set back that money. Plus you will actually come out a head with the interest you earn on it. It is just works better for about 99% of people just to have there employer handle it. Quote Link to comment Share on other sites More sharing options...
Nitrousbird Posted September 14, 2009 Report Share Posted September 14, 2009 Basically, claiming 11 will make the check bigger, but your tax return smaller (or pay if your tax return would have been too small). You won't make any more money in the end. Uncle Sam always gets his, and he gets a lot. Quote Link to comment Share on other sites More sharing options...
Putty Posted September 14, 2009 Report Share Posted September 14, 2009 Too much hassle, I never change it. Although, I did change it for my last bonus. I actually went tax exempt. Quote Link to comment Share on other sites More sharing options...
Skinner Posted September 14, 2009 Report Share Posted September 14, 2009 Too much hassle, I never change it. Although, I did change it for my last bonus. I actually went tax exempt. same here went tax exempt plus I claim 5 and my wife claims 3 and we are on trackto get about $1500 back this year. Quote Link to comment Share on other sites More sharing options...
BiG BeN Posted September 14, 2009 Report Share Posted September 14, 2009 for the past 2 years I haven't had any withholding. I just pay when I file. I tell you what you really feel it when you have to write checks for 25k at the end. I don't know which way i like it to tell the truth, but with no withholding you sure are more aware of where your money goes. Quote Link to comment Share on other sites More sharing options...
CRAWDAD Posted September 14, 2009 Report Share Posted September 14, 2009 most have said it. you can claim as many dependants as you want on your w-4 form at work. The more dependants you claim on your w-4, the less taxes will be held out of your weekly pay check. At the end of the year when you fill out your tax papers (1040) to figure out your adjusted gross income you will be required to pay "X" amout of taxes on it. If your company has with held enough or more than enough, then you will get a return. If not then you will owe money. example 1 guy makes 50k a year and claims single and 0 on his w-4. He is married with 2 kids. at the end of the year total amount held for his federal taxes was 10k. he fills out his 1040 federal tax return and after his deductions (kids,house,donations, and whatever else) his AGI (adjusted Gross Income) is now 36k. He is required to pay taxes on 36k. After looking in the federal book he find out that the amount of taxes he owes for the year is 4k. So he had an 6k over payment of federal taxes for the year. 6k on his return. example 2 same guy makes 50k a year and claims married and 4 on his w-4. He is married with 2 kids. at the end of the year total amount held for his federal taxes was 5k. he fills out his 1040 federal tax return and after his deductions (kids,house,donations, and whatever else) his AGI (adjusted Gross Income) is now 36k. He is required to pay taxes on 36k. After looking in the federal book he find out that the amount of taxes he owes for the year is 4k. So he had an 1k over payment of federal taxes for the year. 1k on his return. example 3 same guy makes 50k a year and claims married and 8 on his w-4. He is married with 2 kids. at the end of the year total amount held for his federal taxes was 1k. he fills out his 1040 federal tax return and after his deductions (kids,house,donations, and whatever else) his AGI (adjusted Gross Income) is now 36k. He is required to pay taxes on 36k. After looking in the federal book he find out that the amount of taxes he owes for the year is 4k. Well he only had 1k withheld from his check for the whole year so now he will have to pay the other 3k. Amount owed at the end of the year 3k you can change your w-4 at work as many times as you would like all year. I done it a few years back. I looked at my past 2 years. See that I was required to pay (going to make this easy math numbers) 5200 a year in taxes. Well I get paid weekly so I know there are 52 weeks in a year so I need to start changing my w-4 deductions until $100 or a lil more is being taken out for federal. I took about 4 try's to get it where I wanted it. Some people like to have a large return at the end of the year (claim Single and 0) Others might like having more money every week (larger take home amount) play with your deductions until you get it where you want it. But to answer your question. Yes you can claim 11 dependants when ever you want. It will all balance out in the end of the year! Sorry if I made this more confusing for anybody. It is a lot easier to explain in person! Quote Link to comment Share on other sites More sharing options...
Ramsey Posted September 14, 2009 Report Share Posted September 14, 2009 full size of av? Quote Link to comment Share on other sites More sharing options...
Putty Posted September 14, 2009 Report Share Posted September 14, 2009 full size of av? He'll never do it. He's an eye tease Quote Link to comment Share on other sites More sharing options...
CRAWDAD Posted September 14, 2009 Report Share Posted September 14, 2009 full size of av? movie? it's not that important! you probably couldn't understand my hillbilly accent! Quote Link to comment Share on other sites More sharing options...
Ramsey Posted September 14, 2009 Report Share Posted September 14, 2009 movie? it's not that important! you probably couldn't understand my hillbilly accent! wut. i was reffering to hoblick Quote Link to comment Share on other sites More sharing options...
evan9381 Posted September 15, 2009 Report Share Posted September 15, 2009 just file exempt for a pay period then switch back. people at my work do it all the time when theyre expecting a big monthly bonus. but like people said, your refund next year wont be as big me personally, i dont like the fact that uncle sam keeps my money as an interest free loan, i know that if i get an extra $75/mo thru the year, i wont be able to save it, so id rather get a $1500 check at once. Quote Link to comment Share on other sites More sharing options...
CRAWDAD Posted September 15, 2009 Report Share Posted September 15, 2009 just file exempt for a pay period then switch back. people at my work do it all the time when theyre expecting a big monthly bonus. but like people said, your refund next year wont be as big me personally, i dont like the fact that uncle sam keeps my money as an interest free loan, i know that if i get an extra $75/mo thru the year, i wont be able to save it, so id rather get a $1500 check at once. yep, I pretty much do the same thing. Now there are some guys that I work with that like to have a huge check at the end of the year! They figured it was easier to pay off a bill that way. Quote Link to comment Share on other sites More sharing options...
evan9381 Posted September 16, 2009 Report Share Posted September 16, 2009 im glad ours arent yearly...while that would be nice, id rather have 2-4k/mo bonus instead of one for like 30-40k. Quote Link to comment Share on other sites More sharing options...
HotCarl Posted September 18, 2009 Report Share Posted September 18, 2009 This may be a bit old but I've been without internet for a week. If your like myself and your employed hourly (which i think you are) you can claim exempt. In fact I know alot of guys who do it during the busier season's to take full advantage of the OT they put in. Though Ive never heard it refered to ask "claiming 11"? Personally I've always stayed away from this simply because I dont have any dependants and it would probably kill my tax return completely, however if you do claim more than just yourself (wife, kids, mother in law, etc...) this can be very benefitial. I use to be good friend with a guy who had 5 dependants, claimed exempt all year and still got a tax return when he filed, of course this is an extreme case. Keep in mind I believe claiming exempt on your taxes only relates to federal taxes, not state. Quote Link to comment Share on other sites More sharing options...
flippy1974 Posted September 19, 2009 Report Share Posted September 19, 2009 man thanks for bringing this up . i had a real big week last week , i worked 109 hours and 32 hours was double time so i did it to . it got me a bring home check of 2290 $ ! Quote Link to comment Share on other sites More sharing options...
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