You can change your tax withholding whenever you want.
Sadly, I looked into this years ago because I was wondering whats stopping me from just paying all my taxes at the end of the year and I found that if you let it drop to far from the amount you owe then you can be penalized…
https://www.irs.gov/payments/underpayment-of-estimated-tax-by-individuals-penalty
Yeah you can just not have any taxes taken from your check!
That’s called tax exempt status and all the folks I seen try it eventually got hit up for the money from the lrs.
Theoretically you can set that money aside in an account that gains interest and make a little money holding onto it until tax season where you pay it all at once.Generally it’s only really worth it if you’re fairly wealthyEdit: I don’t know what I’m talking about. You’ll be hit with a 7% underpayment for doing this. You can split your taxes quarterly if you really want.
And if you’re fairly wealthy, you’ll just spend enough to hire an accountant to move it offshore and then donate to a politician via a church and then the govt pays you taxes.
I thought you had to settle up quarterly?
John Q. Great film!
Also yes it should be true.
