Are tax returns a scam

[me just sayin]

that what software is for

I’m surprised too! Our accountant never mentioned that. Do you have a source for this?


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A simple Google search will give you a source. one thing for sure, if you do not pay enough there could be a penalty. I worked payroll years ago and I have seen this happened. Most of the time this was done at the advice of a tax accountant/lawyer.

 

[JandN2639]

that what software is for


A simple Google search will give you a source. one thing for sure, if you do not pay enough there could be a penalty. I worked payroll years ago and I have seen this happened. Most of the time this was done at the advice of a tax accountant/lawyer.

Let me clarify my question:

Is there a verifiable source for the information that one can claim all exemptions one wants? I thought—and our CPA never said anything different—that unless additional exemptions have legal basis, one cannot legitimately claim them. I figured *anything* that isn’t verifiable can lead to audits and, most likely, penalties.


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[me just sayin]

it would be better if you did your own search for a source. it is apparent you will not be accepting any given here. or ask your own CPA. there are lots of rules CPA don't tell about unless asked or if it may apply. You can claim any amount but unless the rules changed recently, any over 9, the paperwork will have to be sent to the irs for whatever reason. as I said before, if you claim too many and don't pay enough tax, you will be penalized.

 

[me just sayin]

I failed to mention, you are right about exemptions BUT it is not exemptions you are claiming on the w-4, it is allowances. big difference with it comes to legality.

 

[JandN2639]

I failed to mention, you are right about exemptions BUT it is not exemptions you are claiming on the w-4, it is allowances. big difference with it comes to legality.

I thought you meant on the 1040s. As I understand it, on those, you can only claim exemptions you actually have. For example, I don’t have children, so I understand that to mean I cannot claim I have any.


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[pc747]

it would be better if you did your own search for a source. it is apparent you will not be accepting any given here. or ask your own CPA. there are lots of rules CPA don't tell about unless asked or if it may apply. You can claim any amount but unless the rules changed recently, any over 9, the paperwork will have to be sent to the irs for whatever reason. as I said before, if you claim too many and don't pay enough tax, you will be penalized.

Yeah, I know people who will work a lot of ot around Thanksgiving and Christmas time and will change their exemptions to 99 so they can get more money back for Christmas shopping.

This tip has been known for awhile. They say by December (in theory) the irs already collected the money you owe by then so this is a way to "dip" into your tax returns early. Just set it back before the first of the year and know your tax returns will be much lower.

Everyone have a different situation. For some that extra money for the holidays is more important than at tax time. For others it is just too risky, and they would rather have that big return after the holidays.

This is just meant to open people's minds about the tax code. It's up to each individual how they handle it. If you're smart with money, out of debt, and disciplined enough to invest your money then you may be better off claiming more exemptions so that you are getting less, because you will make more on your return then what the irs will.

But if you're the average American living paycheck to paycheck with little or no savings, and trying to work through student loan debt and life. Then I would suggest leave your exemptions where they are at. Last thing you need on your plate is an IRS bill at the start of spring that you're not prepared for. Instead that refund may be considered a forced savings account that you can cash every year. And for many it comes at the perfect time. And if it wasn't for that, life's circumstances would have gobbled up the extra $200-$250 per month with none left in savings.

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[kodiak799]

I’m surprised too! Our accountant never mentioned that. Do you have a source for this?

I'm not giving tax advice.

As has been said, do a google search. And talk to your tax accountant.