My husband was told.
Once or twice a year that one could request for No taxes to be taken out of your weekly paycheck.
True or NOT?
If one could do this what is it called?
How does it work?
Thank you
LuAnn

LuAnn:

It would probably be called a "tax Holiday".

No withholding MAY be allowed for income taxes (federal, state and local), as such withholdings are only estimated tax payments. If it happened only twice a year, it would have a negligible effect on your income tax return.

You CANNOT do it for Social Security and Medicare taxes, as those are flat, pay-as-you-go taxes which are NOT reconciled at the end of the year in an income tax return.

Just to add to what ATE said. This may be a company perk as its certainly not universal. In many large companies the payroll department would have a fit allowng for this.

The purpose of the perk may be to even out withholding. For example, I keep my exemptions high so my witholding is low. This usually results in my needing to pay a small or amount on 4/15 or getting a small refund. I do this because I don't like lending Uncle Sam money interest free. But being able to have a witholding free check a couple of times a year would allow for more precise planning.