General Question

careerbassmaster's avatar

Can someone answer another tax question?

Asked by careerbassmaster (188points) March 2nd, 2009

Is there a legal amount of withholding you can claim on your w4 in order to get more money in your paycheck and just pay at the end of the year. Can you claim more than one or zero.

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3 Answers

DrBill's avatar

You can claim what ever you like, but if you have to pay at the end of the year, you will have an underpayment penalty if you owe more than $1000.

galileogirl's avatar

In the 90’s it was common for the city bus drvers to claim more than 10 deductions. When the IRS got wind of it all hell broke out and now if someone claims more than 6 or 7 deductions the city asks for proof. I remember at that time an underdeduction of 10% could get you penalties. But the may have changed it to a flat $1000 like DrBill said

imhellokitty's avatar

Dr. Bill is correct, claim what you like, but be careful, you could really end up with a debt too big for your liking. And the I.R.S. on your A.S.S. for the rest of your life.

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