OP, do you meet any of the criteria listed on the form or instructions for using the online calculator, including having a spouse who also has a job, receiving dividends, capital gains, social security, bonuses, or business income, being subject to the Additional Medicare Tax or Net Investment Income Tax, etc?I would like to skip withholding completely and make quarterly estimated payments instead, so that I can put as much as possible from each paycheck into ESPP/MBDR (I have large cash reserves, and don't make a high enough salary to max both ESPP and MBDR via payroll deductions).
How can I legally do this? When I go into my employer portal W-4 input, the choices are only to increase dependents (I don't have any), increase deductions (I don't itemize), or mark myself exempt from withholding, but I don't meet the conditions for that. The bottom of the form says that I'm declaring these conditions are true under penalties of perjury, and I don't want to do anything illegal.
If yes, use the online calculator, answer all of the questions it asks accurately and completely (including the questions it asks about estimated payments), and fill in the numbers in lines 3 and 4 that the calculator tells you to fill in on the form (it will even generate a partially pre-filled form with the numbers written for you). As mentioned above, the IRS FAQs explicitly state that line 3 is reduced by the calculator to reflect more than just credits. Scrupulously following the instructions to the form and the online calculator is not committing perjury.
Statistics: Posted by HootingSloth — Sun May 05, 2024 9:10 pm — Replies 39 — Views 2979