How to get no taxes taken out?

[Sub Zero]

Does anyone know if there is any way to get NO taxes taken out of your pay check assuming you make so little you won't owe anything at the end of the year? I'm thinking maybe a certain exemption number or something?

[ogradda]

1. when you fill out your w-4

that's what tells them how much to take out in taxes. you'll still have fica and medicare taxes taken out tho.

[NMDemDist2]

2. you can claim "exempt" as long as you owed no taxes last year and

don't expect to owe taxes this year

[Sub Zero]

3. Excellent

I'll look in to that.

[Starlight]

4. It's on the W4 that you file with your employer.

http://www.irs.gov/pub/irs-pdf/fw4.pdf

question #7

[ayeshahaqqiqa]

5. become a subcontractor

If you are a subcontractor for your employer, no taxes of any kind are withheld from your paycheck. After you have earned $600, your employer will have to file a 1099 at the end of the year and give you a copy. You are expected to then pay ALL taxes, including the employer's share of FICA and Medicare. There are restrictions on who can be a subcontractor (for example, you must use your own tools to do the job), but I don't know how carefully the Feds look at this. I know that some of the guys who get 1099s from us never file income tax or pay the taxes, and I don't think they have been caught. But I wouldn't recommend doing that.

[amazona]

6. they've really cracked down in recent years

The IRS has made cracking done on contractor ("work for hire") fraud a big issue. This protects workers. Subcontractors get no benefits -- no vacation, no health care, no retirement, no nada. It is the worst of the all possible worlds. If you are really an employee and not a contractor, your employer WILL get in trouble, WILL pay fines, and WILL NOT be happy with you.

I had to prove to the IRS that I was not an employee of one of my publishers and I live in Louisiana while the publisher's office is in New York, so they are really being sticklers on this, and they are really getting out there and investigating this.

You also have to pay your taxes every quarter instead of just every year. If you don't pay every quarter, you pay an automatic penalty. My friend pays higher taxes every year just because he is not well organized and doesn't keep up with his quarterly payments.

The guys who have 1099s filed on them but who never pay taxes...they might as well never buy a home or open a bank account...because they're going to forfeit that when the IRS catches up with them. This is only an option for people who have no future.

[Lone_Star_Dem]

7. I know a man who got caught after not paying in for 10+ years.

He was a subcontractor for a carpet company. They hit him mega hard. He had to sell every luxury item he owned and fork over the cash, and he's still making payments on it.

[RPM]

8. best way: don't work.

:-) but that can cramp the lifestyle a bit....

[Sub Zero]

9. At $5.15/hr

It would be hard for the "lifestyle" to get any more cramped.

[Baja Margie]

10. No taxes taken out, or hardly any

Declare about 7 or 8 dependents on your W-4. Problem is, you will owe at the end of the year, then if you can't pay, it's a big bummer. You can file an extension will no penalty....but they will find you, and throw the book at you if you don't pay up.

Better idea, start somekind of a business out of your home, certain things are required, but you can always claim loss if you can show it, and can save huge chunks of money.