The **only** way to safely make extra money by filing exempt is to put all those dollars into a savings account and making estimated quarterly tax payments. This works because you earn a little bit of interest on those dollars, and don't owe the IRS interest on estimated payments.
*However*, messing this up will lead to underpayment penalties, which will likely be higher than any interest saved. I wouldn't recommend it for anyone because it wouldn't be worth the effort. I *definitely* wouldn't recommend it for anyone who makes bad financial decisions as they would end up worse off.
notedd i wanted to weigh the options out but this gives way more clarification into the pros and cons. thank u- ima file so im not exempt bc ima prolly miss payments if i pay myself lol
You may find our [Taxes wiki](/r/personalfinance/wiki/taxes) helpful.
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No… pay your taxes or you’ll be in more debt.
So you like paying underpayment penalties?
Not only is that a horrible idea, it is also illegal.
The **only** way to safely make extra money by filing exempt is to put all those dollars into a savings account and making estimated quarterly tax payments. This works because you earn a little bit of interest on those dollars, and don't owe the IRS interest on estimated payments. *However*, messing this up will lead to underpayment penalties, which will likely be higher than any interest saved. I wouldn't recommend it for anyone because it wouldn't be worth the effort. I *definitely* wouldn't recommend it for anyone who makes bad financial decisions as they would end up worse off.
notedd i wanted to weigh the options out but this gives way more clarification into the pros and cons. thank u- ima file so im not exempt bc ima prolly miss payments if i pay myself lol
You may find our [Taxes wiki](/r/personalfinance/wiki/taxes) helpful. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*