How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask PDtax Your Own Question

PDtax
PDtax, CPA firm owner
Category: Tax
Satisfied Customers: 1866
Experience:  32 years tax experience, including four years at a Big 4 firm.
Type Your Tax Question Here...
PDtax is online now
A new question is answered every 9 seconds

Can I claim tax exempt on one paycheck a year then change it

Resolved Question:

Can I claim tax exempt on one paycheck a year then change it back the next week?
Submitted: 2 years ago.
Category: Tax
Expert:  PDtax replied 2 years ago.

Customer:

hi from just answer.

PDtax, CPA firm owner
Category: Tax
Satisfied Customers: 1866
Experience: 32 years tax experience, including four years at a Big 4 firm.
PDtax and 7 other Tax Specialists are ready to help you
Expert:  PDtax replied 2 years ago.
What Happens Now?

Your chat has ended, but you can still work with your Expert to get an answer to your question if you have not yet received one.

Come back to this page at any time to see additional information from your Expert.  You will also receive an email when your question is updated.  If you want to send a message to your Expert, use the box below.

If you have already received a satisfactory answer to your question, click the Accept button above.  Experts are credited for each accepted answer they provide.
Expert:  PDtax replied 2 years ago.
This used to be a pretty good scam, but IRS caught up to it.

The problem is in order to claim EXEMPT, you actually have to BE exempt. IRS can assess penalties if you claim EXEMPT and aren't The W-4 needs to be signed under penalty of perjury, and you turn this in to your employer. This can be used against you if IRS wants a penalty.

If this answers your question, please click Accept, and thanks from Just Answer.
Customer: replied 2 years ago.
Relist: Incomplete answer.
i didn't receive an answer
Expert:  PDtax replied 2 years ago.
You can not claim EXEMPT unless you qualify for it. IRS can penalize you for doing it.

A better way is to claim more exemptions to manage withholdings, just not EXEMPT, then switching later.
Customer: replied 2 years ago.
I understand that if enough taxes aren't paid at the end of the year I will incure a penalty. The answer I want to know is if I will be penalized for doing it, but then correcting the amount throughout the year.
Expert:  Anne replied 2 years ago.
Hi

Different expert here. I'm assuming that you either have alot of OT or that you are going to be paid a bonus soon.

If you're wanting to change your W4 because you'll be receiving a bonus, your employer may treats is as a "lump sum":, then they will withhold 25% no matter what your W4 says. ( I work for a company that pays us a 'bonus" and they always treat it a a lump sum and withhold the 25%)

You can change your W4 (although the above expert is correct, you should not claim "exempt", you should increase the number of allowances you claim. For example, if you are claiming "Single/0", you may, want to change it to "Singe/15" with your employer's permission (some employers only allow you to change your W4 at certain times of the year, or they have a limit of 1 change per year, meaning you would not be able to change your W4 back)

The other reason you need your employer's permission is that the IRS may review your withholdings (I understand that you don't plan on making the change permantley, only for 1 week), but the IRS also audits employers so that they don't allow people to claim "exempt" when they don't qualify, and to make sure that the employer is following the IRS guidelines.

Please see below:

Publication 919 (2011), How Do I Adjust My Tax Withholding?


So, the answer to your question is....can you claim "exempt"? No

Can you increase the number of your exemptions/allowances on your W4? (I think the top number you can claim is around 15, so in effect, over claiming your exemption/.allowances will accomplish the same result as claiming "exempt" Again, this is at the discretion of your employer.

Can you increase the number of your exemptions on your W4 for 1 week and then change it back? Maybe.

First, you have to find out if your employer will allow you to change your W4 for one week.

Also, you will need to find out how long it takes your company to make the change in your payroll. According to the IRS pub I referenced above, it can take up to 30 days.

As you can see, this isn't just a yes/no answer, and the reason is the new guidelines the IRS instituted making employers carry some responsibility for not allowing their employees to claim exempt when they're not, or to knowingly allow a employee to vastly under withhold.

I hope this helps.
Expert:  PDtax replied 2 years ago.

Hi again. I did not think about the reason for your question. Sometimes we don't have enough to go on, and our answers may not be 'exactly' the answer you look for.

 

The other Expert added information about bonuses, which makes sense. I hope between us you received the answer you needed. And a thank you to the other Expert for adding that information.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.