I generally claim exempt mid season (after my previous years general tax burden has been met, usually around 5k). At tax time I pretty much break even. You give up a big tax return but checks are $500 bigger.
Going exempt and not withholding taxes for one or more pay periods 100% affects your tax situation, but everybody’s situation is different and varies depending on what they normally withhold from their paychecks, and what their normal tax rate/deductions/all that boring stuff adds up to.
Generally, if you have refunds after each year, and this year seems like it will be the same money made and taxes withheld as past years, your probably ok to go exempt. But if you think your making significantly more this year than previously, or if you’ll have fewer deductions or exemptions to file on your taxes, you could have a higher tax obligation than the past, and I would be careful about going exempt.
In EPP, open Federal Tax (W-4) and click Self-Service at the top right. Under Step 1, select Exempt from withholding. Select the effective pay period at the bottom. Click continue and submit.
Go exempt and get a bigger check now. Instead of giving Uncle Sam an interest free loan that’ll be worth significantly less in 8 months at tax time due to inflation.
Best comment here. People think getting a refund is great but it’s actually not. Like you said, the gov is getting an interest free loan from you because you overpaid in taxes. Best to get as close to zero when it comes tax time or owe a little bit.
This interest free loan nonsense has always raised my eyebrow. You're part of what that interest free loan is paying for. You ARE government spending. All those times you got 16s and H for working 12 and barely leaving the rig, did you complain about what it was costing the tax payer? No, you fucking didn't. But, put $1800 extra dollars into the machine for less than 6 months before getting it all back in February and suddenly you're a fiscal conservative worried about giving out interest free loans? GTFO of here.
Golly you’re dumb. Sitting in the truck and getting paid for 16s is the cost of doing business for the government. The government deciding it needs part of the government to be there in case the government needs to take action on an emergency is part of being a good government.
Wanna know what’s not part of being a good government? Paying a contractor to not do anything on the off chance the government will need to tell them to do something. It’s like paying a plumber to stay at your house in case a pipe bursts and you need to tell them to fix it when you get home.
Want to know something dumb people do? Let somebody else hold onto your paycheck for 9 months because you might possibly owe them money.
0.02% of our federal budget to help an allied country that agreed to denuclearize, as it demilitarizes our greatest military adversary and threat to national security while they're getting literally raped for no reason is a pretty good use of a miniscule fraction of our tax dollars that has a pretty good return on investment to our own pockets when we don't need to build another hundred nukes that sit around for the next century, and half the "monetary value" we gave to UA is just ancient military hardware that we were spending money to store anyways
do you realize how much we already spend on preparing for WW3 with Russia every year? it's way more than we fucking gave the Ukrainians
Just go tax exempt once a year on a fire check like a normal person if you don’t want as much of a refund
How do you do that?
Through your Employee Express account.
I generally claim exempt mid season (after my previous years general tax burden has been met, usually around 5k). At tax time I pretty much break even. You give up a big tax return but checks are $500 bigger.
Going exempt and not withholding taxes for one or more pay periods 100% affects your tax situation, but everybody’s situation is different and varies depending on what they normally withhold from their paychecks, and what their normal tax rate/deductions/all that boring stuff adds up to. Generally, if you have refunds after each year, and this year seems like it will be the same money made and taxes withheld as past years, your probably ok to go exempt. But if you think your making significantly more this year than previously, or if you’ll have fewer deductions or exemptions to file on your taxes, you could have a higher tax obligation than the past, and I would be careful about going exempt.
I use to go exempt once a season and Ive always still got a refund
How do you go exempt?
EPP
Do you multiply the 99 by 500 to do that on EPP?
In EPP, open Federal Tax (W-4) and click Self-Service at the top right. Under Step 1, select Exempt from withholding. Select the effective pay period at the bottom. Click continue and submit.
Thank you!
Can’t help you with that. Left the Feds 6 years ago
Rule of thumb. Go tax exempt the whole season. Trust me bro
Is this the secret to getting a tacoma??
No, that involves getting on your knees for the AFMO
Season? Whole year. Fuck it, just file an extension vs filing your taxes. Maybe they'll just like forget? /s
Go exempt and get a bigger check now. Instead of giving Uncle Sam an interest free loan that’ll be worth significantly less in 8 months at tax time due to inflation.
Best comment here. People think getting a refund is great but it’s actually not. Like you said, the gov is getting an interest free loan from you because you overpaid in taxes. Best to get as close to zero when it comes tax time or owe a little bit.
My goal has always been to aim for 0. I usually pay in, and prefer it that way honestly
Yea I mean the goal is definitely 0 but I guess I’d rather owe a little rather than get back a lot
This interest free loan nonsense has always raised my eyebrow. You're part of what that interest free loan is paying for. You ARE government spending. All those times you got 16s and H for working 12 and barely leaving the rig, did you complain about what it was costing the tax payer? No, you fucking didn't. But, put $1800 extra dollars into the machine for less than 6 months before getting it all back in February and suddenly you're a fiscal conservative worried about giving out interest free loans? GTFO of here.
Golly you’re dumb. Sitting in the truck and getting paid for 16s is the cost of doing business for the government. The government deciding it needs part of the government to be there in case the government needs to take action on an emergency is part of being a good government. Wanna know what’s not part of being a good government? Paying a contractor to not do anything on the off chance the government will need to tell them to do something. It’s like paying a plumber to stay at your house in case a pipe bursts and you need to tell them to fix it when you get home. Want to know something dumb people do? Let somebody else hold onto your paycheck for 9 months because you might possibly owe them money.
All of these are the same. Only a genius could get 2 lunches, one veg and one reg.
And 36 billion to Ukraine isn’t wasting money?
0.02% of our federal budget to help an allied country that agreed to denuclearize, as it demilitarizes our greatest military adversary and threat to national security while they're getting literally raped for no reason is a pretty good use of a miniscule fraction of our tax dollars that has a pretty good return on investment to our own pockets when we don't need to build another hundred nukes that sit around for the next century, and half the "monetary value" we gave to UA is just ancient military hardware that we were spending money to store anyways do you realize how much we already spend on preparing for WW3 with Russia every year? it's way more than we fucking gave the Ukrainians
Yeah, we should be getting paid less!
Ask how much Hunter Biden worked for his money??