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Yes, it is possible, but not a wise course of action. You would be hit with underpayment penalties and interest. By law, taxpayers are required to have approximately a quarter of their tax liability paid in each quarter of the year. If you have nothing withheld, you would have to make quarterly estimates. If you just waited until April 15 to pay what you owe, there would be underpayment penalities and interest computed on the payments that you should have been making throughout the year.
"The United States income tax is a pay–as–you–go tax, which means that tax must be paid as you earn or receive your income during the year. You can either do this through withholding or by making estimated tax payments. If you do not pay enough tax, you may have to pay a penalty for underpayment of estimated tax."
My reasoning was that I could just put away the money that would be taxed into a MMA and make some interest while I am awaiting the bill. I knew it sounded too good to be true!
We've yet to figure out just the right amount of deductions to have. Every year it seems our situation changes, whether it's making more/less, going to school, buying a home, etc.
I guess that's just part of many people's mid/late 20s.
Your employer is required to turn in information on certain questionable claims on W4 forms. In addition, I have seen far more people who got creative and then fell flat on their faces when the time came to pay up than I have seen people be successful in your strategy.
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