2 votes

Help me with a W-4 Form - The Machine doesn't deserve MY money!

Someone who's smarter or more experienced at tax withholdings, please help me with this. How do I keep my wages? How do I not pay an "allowance" to the disrespectful child that is our government? No kids, just two of us...can I claim the Labrador as a dependent? Is there any secret to this, or am I just stuck paying The Man? Bare-in-mind, I don't want to go to prison someday...Any advise is appreciated!

Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Make a new goal and a plan to get your income into

something other than the "earned income" category which is taxed at the highest rate.

Over time plan to get your income as Warren Buffet has done into dividends or rental income or royalties or anything except earned.

In the process learn the tax code. Learn about tax credits.

Right today put $500 into an IRA if you are low income. This will save you dollar for dollar $500 in taxes due.


You need to be self employed or work as a contractor

You get "income reimbursment" checks bi-weekly, not income.

Put UD, UCC 1-207 "without prejudice" after your signature on all forms and contracts. If anyone asks why you put those along side your name tell them its to prevent identy theft. By putting those things beside your name you know damn well it was YOU that signed it and not someone else forging your name.

Read and understand the US Constitution and read your State constitution.

Educate yourself on your states civil procedures too.

W4 Taxes

You might want to check out losthorizons.com

“...taxes are not raised to carry on wars, but that wars are raised to carry on taxes”
Thomas Paine, Rights of Man

Since a W-4 is for wages, all

Since a W-4 is for wages, all of your wages will be reported to the IRS, so you can't prevent them from knowing. Your W-4 won't affect the amount you owe them, but only when you will owe it. You can overpay on each paycheck, and have them give you money back at the end of the year (if they have any money) by selecting 0 exemptions. Or you can underpay each paycheck and owe them at the end of the year by selecting many dependents or trying to claim EXEMPT, which may or may not be illegal.
Either way, they get their proper amount of money when you file your taxes at year's end.

The only way to decrease your taxes is to go after exemptions and deductions. But, unless the activities resulting in deductions were something you were going to do anyway (like buy a hybrid or install an efficient furnace in your home), then the deduction game is generally not helpful.

“If ever a time should come, when vain and aspiring men shall possess the highest seats in Government, our country will stand in need of its experienced patriots to prevent its ruin.”

Had my withholdings jacked up to 12 for a long time

but as my tax deductions slowly eroded and taxes increased, I had to throttle back to about eight, probably need to drop back to six this year. What some of the rich do is they maximize their charitable contributions to various outfits to offset any taxes they would pay. This ensures they decide where their money gets spent, rather than uncle.


Not smart.

Spending money on charity to avoid tax is not a good way to keep more of what you earn.
Assume you are in the 25% tax bracket and you donate $4,000 to charity. Now, your income is $4,000 less than it would have been and you are taxed on the rest of your income accordingly. You are out $4,000.

Now, assume you keep the $4,000. At a 25% rate, you will pay the Feds $1,000 and be able to keep $3,000 of what you earned. You are out $1,000.

Wasting $3,000 of your own money to prevent the government getting $1,000 is financially unwise.

“If ever a time should come, when vain and aspiring men shall possess the highest seats in Government, our country will stand in need of its experienced patriots to prevent its ruin.”