Tax advice needed.

[BIGLEW]

Okay, I am tired of giving the government a interest free loan every year and would much rather get my money up front and put some aside to pay at the end of the year. But I am not sure where to start. I am guess I need to begin with my W4 at work, but what do I put in it to not pay into taxes? Also, how do I determine how much to save out of each paycheck to pay at the end of the year? I was told 10% to 15%.

Anyone on here that can help, please let me know.

 

[tlw1179]

I would say put all the dependents down you can legally get by with

 

[abailey362]

you can put anything on a w4 you want.....you can always check the box that you do not estimate having any tax liability and they shouldn't withold. not sure if ga state works that way or not.

also, you can incest the money, and then file an extension and wait til later in the year to pay...put the cash to work for you

 

[Sandman771]

You can look at your adjusted gross income from your 1040 this past year and then your taxes owed. Divide that amount by 12 months if paid monthly or 26 if twice per month and that is a starting point to put away for your taxes for next year. And if it turns out you owe more than you put away, then just file an extension for that year. Start it immediately if you want. You've already saved enough this year for taxes.

 

[oneill]

you can put anything on a w4 you want.....you can always check the box that you do not estimate having any tax liability and they shouldn't withold. not sure if ga state works that way or not.

also, you can incest the money, and then file an extension and wait til later in the year to pay...put the cash to work for you

>incest the money

learn something new everyday.

 

[Leatherhead]

Incest is illegal.

 

[klarktx]

Sandman has it right.


After all that, vote for those that empower the Fair Tax and you don't have to worry about it again.

 

[Sandman771]

Plus Fair Tax > incesting your money. J/K

 

[Ogg]

Can't speak to GA taxes, but the Federal rules are pretty easy. First and foremost, if you owe, filing an extension doesn't work as others have implied. The extension delays when you have to file, not when you have to pay. You'll end up owing interest if you wait til the end of the extension to pay.

In order to avoid penalties for under withholding you need to withhold at least 90% of the taxes due OR 100% of the prior year's tax. So, take last year's total tax bill, divide by 12, 24, or 26 depending on how often you get paid, and withhold that amount from each check.
Note that If you're self-employed and filing quarterly estimated taxes the rules are a bit different.
Also, IANAL and IANACPA so if you go to jail it isn't my fault.

 

[Hyrb]

OK, I did this for a while. Asking here is cool and you will get many answers - also many will be right - and many will not! The Tax Code is thousands of rules leaving more than one correct answer for many things. The best annual outcome is to pay $50 bucks or so. This means that you loaned Obama NOTHING. Nor did you owe the Service enough to have to pay an underpayment penalty.

Withholding is an art form. You need to take into account dependents, multiple jobs, spouse and hubby both working, size of mortgage, passive income and other factors. If you have never tried to play close to the line before see an Enrolled Agent and get a little advice. You won't regret it.

DO NOT screw with the IRS! You do not owe one penny more than you must legally pay but you do not want to piss them off by doing something stupid and get them all over you, as they will find something eventually.