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IMDB rating: 7.20 Plot: When 9 (voice of Elijah Wood) first comes to life, he finds himself in a post-apocalyptic world where all humans are gone, and it is only by chance that he discovers a small community of others like him taking refuge from fearsome machines that roam the earth intent on their extinction. Despite being the neophyte of the group, 9 convinces the others that hiding will do them no good. They must take the offensive if they are to survive, and they must discover why the machines want to destroy them in the first place. As they’ll soon come to learn, the very future of civilization may depend on them. |
Actors: Wood Elijah,Reilly John C.,Glover Crispin,Landau Martin,Plummer Christopher,Tatasciore Fred,Animation,Adventure,Fantasy,Sci-Fi,War,
Is it smart to claim 9 on W4 and then file as 1 when its tax time to get more money first?
Because I think of it this way. If I claim 1, then its like giving the government a free loan. If i claim 9, I can get a lot more money now, put it in a money market account or something and then just pay next april and maybe make couple hundreds in interest which I know is also taxable but it works right?
Do I see any legal backlash doing this?
In addition to having underpayment penalties, and the legality issue already mentioned, if the IRS sees that you have a pattern of under-withholding on your W2 wages, they can issue a "lock-in" letter to your employer. In this letter, they tell the employer how many allowances you are allowed to claim. You employer is to ignore any W4’s you submit to them. That’s not a situation I would want to be in.
read about it here:
http://www.irs.gov/individuals/article/0 ,,id=139412,00.html
SG | Apr 08, 2008
Your tax bill at the end of the year will kill you.If you claim 9 now and 1 at the end of the year you will owe hundreds of dollars in taxes if not thousands. You wont earn enough intrest to cover it trust me.
dymond | Apr 08, 2008
So long as you are aware this is what you are doing, there is no problem with it. Many people don’t see things the same way, so kudos to you for seeing the reality of the situation.
The only problem with your scenario is that at the end of the day you need to ensure you are paying in enough that you don’t get hit with an "underpayment penalty". Usually, if you owe more than a grand, you are treading into the area that it will kick in. If you end up in a penatly situation, then this scenario might not be worth this added cost to you.
SO, I say 9 might not be the right way to go, but 2, 3 or even 4 may avoid the free-loan scenario while also avoiding the underpayment penalty.
nova_queen_28 | Apr 08, 2008
The IRS has something called an "underpayment penalty" if you only pay taxes at the end. I’ve seen it quoted differently in different places, but I’ve heard it’s either $350 or $500. If you can make more than that in interest, net of taxes, I suppose it would be worth it.
adinahwithkaden | Apr 08, 2008
Probably not smart, and actually not legal unless you have enough deductions for that to make you come out about even - did you notice the line about "under penalty of perjury" above your signature on the W-4?
And from a purely practical point of view, if you owe over $1000 when you file, you’ll pay penalties, which might end up eating up that interest you’d have gotten through the year.
Judy | Apr 08, 2008
Dwight Mclaughlin