Hello,

I just got a new job and am having problems with my employer over my deductions. I usually claim 12 so that I get most of my money up front and then pay it at tax time in April. I usually get penalized but will take the hit as long as they are not using my tax money all year interest free. I have been doing this for close to 20 years with no problems. My question is this, my new employer says he will not alow me to claim 12 unless I prove to him that I have 12 dependents! He says that he will be liable for the taxes to Fed and state if I don't pay them. I told him that I pay my taxes just like any other hard working American, I just do it in April instead of all year long. I understand that he is liable for the Med. And SS but he is not responsible for my Fed and state taxes, that is between me and them. Do I have a leg to stand on here, and how would I go about forcing him to alow me to claim on my w-4 my what I wish?:mad:

Frequently Asked Questions - 4.9 Life Insurance & Disability Insurance Proceeds

From above: If the employee does not submit a valid W-4, the employer is instructed by IRS to withhold the maximum amount of tax (not a direct quote).

I understand you don't want the govt to use your money interest free, but doesn't the penalty just about offset the interest you save. As I recall if taxes are underpaid they charge interest and penalties.

I am not a tax expert, but I'm sure we'll have some comment soon.

It used to be that employers were required to notify the IRS if you claimed 10 or more exemptions, but this is no longer the case. However, the IRS can review your withholding and may determine that your employer is required to reduce the number of allowances you are claiming. If every year you are having to pay back taxes and interest penalties then this may happen to you soon, if it hasn't already.

I don't understand why you're willing to pay the IRS more than you have to. By paying interest charges at 1/2% per month you are raising your overall payments to the IRS.

Unless you have a large family, claiming 12 exemptions is abusing the withholding system.

This is a matter of a simple compromise. Claim the correct amount of withholdings allowed by the instructions with the W-4 and get on with your life.