[USER]

Does anyone claim exempt and make their tax money work for them during the year? If so, how?

how do you manage this approach effectively to avoid any issues when it’s time to file taxes? I’m curious to hear about your strategies, experiences, or any advice on handling potential tax liabilities.

Do you find this method beneficial, or are there significant risks to be aware of?

Any insights on managing budgeting, saving for tax payments, or ensuring compliance with tax laws would be greatly appreciated.

Looking forward to learning from your experiences!

[Carl]

I do, the savings is minimal but I do zero withholding and do estimates

[Joe]

I did for years but then got penalized and now have to due quarterly estimated on top of my w2 withholdings.

[Rhonda]

If you claim exempt and owe taxes without making appropriate estimated payments, the IRS will happily send a lock in letter to your employer after which you will no longer have the option of changing your withholding rate, or exemption number.

[Kevin]

I only do it a couple of times in a year because I don’t want to owe come tax time. I go through my work pay website and change it the week before I get paid so that it’ll take effect.

Ask HR how to do yours.

It might take longer for yours to take effect but mine is instant, as long as I do it the same pay period I want it to take effect.

[Author]

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