Federal - Can I change my W4 to no withholding for Federal Taxes?

[kaitiekaitkait]

Live and work in Texas. Is it possible to NOT withhold any federal taxes from my bi-weekly employer paychecks  throughout the year and instead pay all of my owed taxes at once by the 4/15 deadline? And not be penalized.

OR if I am required to withhold throughout the year what is the lowest amount that has to be withheld to avoid any penalties?

[AR_CPA2]

Good Afternoon Kaitiekaitkait,

Our tax system is "pay-as-you-go", therefore employers are required to withhold taxes from wages. You could fill out Form W-4 and have them take out less taxes from you but remember that when you file taxes and you have a balance due that is more than $1,000, you may owe Estimated Tax penalty. The amount of withholding is based on IRS federal withholding table and Form W-4 submitted by you. 

Thanks for participating in TurboTax's Ask the Expert event today. I hope this information was helpful!

Have an amazing day.

Amita R (CPA 10+ years)

[FranklinF]

Possible, Yes. Likely, it depends. This is a truly open ended question.

The best thing you can do is to ESTIMATE your Tax Liability for the following year with as much accurate data as possible to determine any possible liabilities for Tax Year 2024.

Below are some useful links:
W-4 Calculator
Tax Calculator 2023 


 
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