Is it midnight yet? Time to protest the war!
So...on tax day, you might think that I'd advocate refusing to paying one's taxes--perhaps join the war tax resisters movement. But no...the penalty for refusing to pay up has gotten kind of stiff, $5000.00 now, up from just $500.00 a year ago So I'm going to make another suggestion...
If every pissed-off W2 wage earner, on the same day, submits a new W-4 listing 100 allowances, their federal withholding will be effectively reduced to zero for the remainder of the year. Each protester should then invest the money saved. Finally, in January of the next year, protesters should each make one "quarterly" payment that covers their tax burden and use any capital gains to cover any penalties.
Though claiming excessive allowances is not illegal--some taxpayers need to do it to get their withholding set correctly--it's also not exactly legal. Any amount over 9 gets reviewed by the IRS, anyway. But the steep, temporary drop in revenue will throw the feds into a tizzy. Even if all that happens is that the IRS has to review 50,000,000 or so W-4s, it might still be worth it.
SA... Not too late. The beauty you should sometime after you pay your taxes. The date should be coordinated, and it should change each year. Keep the feds on their toes.
I think they are singing "Oh, Canada"
D.K... Very well put. Quarterlies are the way to go for most everybody. Never give the government money you don't have to, but if we all took your suggestion at once...say 30M to 50M of us, that would certainly give the feds something to worry about, right?
Kathy... I guess it's not about actually forcing them to cut off funds--more about driving home the point that, "you can ignore us at your peril, but here's a way we can fight back and really hurt you."
I don't think they'll actually cut social-security. Bu$hCo fears the AARP more than they fear liberals.
However, I got so pissed off I finally changed my W4 last year and refused to let them have that extra money interest free.
I just filed my taxes and because I got lucky on the Lottery for a few bucks ended up owing a little more than I would have. I still however got a small refund. So I have a question.
How does one make a quarterly payment and how does one determine what that payment amount should be?
Does one calculate what there yearly tax liability is and than divide it by four and how do you make that payment if that is the correct way to do it?
But seriously...rather than trying to angle for a refund, keep back...say...8% of your estimated tax liability, invest it, and then pay it back to the government at tax time the next year. As long as your amount owed is less than 10% of your payment...no penalty.
If I paid a quarter payment as it would be the divided amount for that quarter and I have it in a bank up too that time I would still be making interest on it anyway.
Then when I file my yearly tax return I would in fact pay the last quarter payment or I would pay that before I file my tax return?
You don't pay the last payment with your taxes because you need to report that your within 10% of your total tax burden in order to avoid penalties, and the payment on your taxes doesn't count.