Unless the amount is huge, it won't make a difference. And it might actually put some people in real harm's way, because it will be easier to go after a select few than a huge majority.
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Unless the amount is huge, it won't make a difference. And it might actually put some people in real harm's way, because it will be easier to go after a select few than a huge majority.
Well, depends on your options. At the very least everyone should list exempt on w2 for first quarter. Then, use the tax calculator on IRS website and set your max allowed exemptions. Check on the calculator every few months and see where you are. As soon as you have met your obligation, go exempt again.
Doing this you should only get refunds if you get tax credits and may end up owing a hundred bucks or so. Which you pay, filing Paper Tax Forms and by check or money order April tenth of so.
The IRS does Not have our banking info. We file on paper, pay by money order or cashiers check. So we could avoid the pandemic money.
For advanced floaters, figure out the money you need to live on. We live simple, so we have no problem living in exempt territory.
But as an example, say the tax dude tells you you, your spouse and two kids can make fifty thousand a year and pay no income tax. You simply find a part. Of the country where you can live comfortably on forty nine thousand a year and move there.
We just moved to a place where we can keep our current standard of living on hubby's projected social security when he files in a few months without working at all. And since it will put us in what the feds consider the poverty zone we can even get food stamps, discount utilities and shit if we want to lol.
Or, we can work under the table and screw the feds. Plenty of off the books work around if you look for it.
We don't use health insurance either, despite having chronic conditions in my case. Instead of paying premiums, I get actual health care.