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3 Answers

Too many exemptions on withholdings?

Asked by: bellmont 291 views YA Discussion

In early January 2012 I was given a promotion at work. When I looked at the leave earnings statement I read under federal with holdings as “S” (my guess was for single) when in actuality that was an “8”. So now that taxes have rolled around I owe a relative fortune. Is there anything I can do to help lessen the amount? Also should I be fearing an underpayment penalty or any other kind of penalties?

Thank you in advance.
Perhaps I should clarify. I understand that I owe what I owe. I was intending to ask if the penalty was built in, which is what I would have liked to lower. Also, I have changed my W-4. Lastly, what size of underpayment penalty am I looking at, is it a percentage or is there a certain bracket that I would fall into?

3 Answers

  1. Wayne Z on Jan 28, 2013 Reply

    No, you can not get the amount reduced.

    You owe what you owe.

    The IRS will accept an installment agreement if you can pay it all at once by 4/15 but there will be additional fees and interest.

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  2. Willie J on Jan 28, 2013 Reply

    File a new W-4 immediately.

    You could face an underpayment penalty.

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  3. Lisa A on Jan 28, 2013 Reply

    You making a mistake on your W4 does not lower your taxes. Everyone has to pay the taxes that they actually owe, no matter what they put on your W4.

    Yes, you can expect an underpayment penalty, and you can expect to pay your taxes quarterly next year.

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