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[-] village604@adultswim.fan 0 points 1 week ago

Yes, but you have to have had none the previous year to claim the tax exempt status that lets you avoid any withholding.

[-] Rivalarrival@lemmy.today 0 points 1 week ago

Horseshit.

If I'm not going to have a tax liability this year, I don't have to allow withholding this year. Last year's tax liability is irrelevant to the issue. There is nothing in the tax code that requires me to loan money to the IRS that I know they will just have to return to me later.

The reason not to do this is the additional penalty they will assess if my tax liability this year isn't actually zero.

[-] village604@adultswim.fan 1 points 1 week ago* (last edited 1 week ago)

An employee can also use Form W-4 to tell you not to withhold any federal income tax. To qualify for this exempt status, the employee must have had no tax liability for the previous year and must expect to have no tax liability for the current year.

https://www.irs.gov/taxtopics/tc753

I'm not sure why you thought I was making this up.

[-] Rivalarrival@lemmy.today 1 points 1 week ago

Why do you think I need "exempt status" to achieve zero withholding in a particular year?

this post was submitted on 07 Oct 2025
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