You can have FEDERAL taxes brought down. I believe you simply write "EXEMPT" in the deductions box on your W2. Of course you need to be a fulltime student or in some way exempt.
If you pay too little and have to pay later, you will also pay penalties and interest.
First, maybe. But lousy. Report Abuse
No, that's not legal.
You can only claim EXEMPT from withholding (income tax only, FICA taxes will always be withheld) if you had $0 tax liability for the prior tax year and reasonably expect to have $0 tax liability for the current year. Filing a fraudulent EXEMPT claim on Form W-4 leaves you open to penalties for underpayment of tax, a $500 administrative fraud penalty, and a lock letter from the IRS that will force your employer to withhold tax at a level determined by the IRS, normally Single and 0 or 1 withholding allowance.
Contrary to widely held misconception, taxes are not due on April 15th but as the income is earned. If you owe more than $1,000 when you file you may be subject to penalties for underpayment of estimated taxes.
NOT legal.
Its illegal to claim "Exempt" on a W-4 form unless you had no tax liability the prior year, and expect to have no tax liability again for the coming year.
Generally, you CAN increase the number of allowances you claim on your W-4, and reduce the amount of taxes withheld, but if you owe more than the smaller of 10% of your tax liability or $$1,000 then the IRS will impose a penalty for not having enough withheld and they might lock in your W-4 at 0 or 1 exemption so it doesn't happen again. If the IRS tells your employer to lock your allowances, your employer will obey the IRS and ignore any W-4 you submit.
Taxes are not due on April 15th. We are on a pay-as-you-go system.
The chance that Congress would ever eliminate that which provides the government with a continual flow of revenue is zero. I seriously doubt if they would ever abandon the idea of withholding tax.
What I know is you could request that more money be deducted from your paycheck but I'm not aware that you could request that no money be withheld. I don't think Uncle Sam would like that.
They'll take out for social security and medicare in any case. Depending on how you fill out your W-4, they might not take income tax. If you owe over $1000 though when you file, you'll pay penalties in addition to the tax. And if you file your W-4 as "exempt" when you aren't, you can also end up with a $500 fine.
All in all, it's a read bad idea.
if you truly expect that you will have no tax liability at the end of the year you can use "exempt" on your W-4 form. It is a danger if in fact you do owe tax as there are penalties for underpayment and using exempt if your really were not exempt.