Can I file Exempt on my Christmas bonus

[Stick_man]

My bonus is really big compared with my income which is going to leave me severely over withheld and, I hate the idea of deferring my hard-earned bonus till April of next year till I get a "refund."

Can I just file Exempt?

[Burke]

I believe the employer has the option to consider the bonus as paid combined with the last regular pay using the withholding exemptions on file. Or they can treat it as paid separately at the IRS mandated rate. (Most do this.) If your employer would do the first option, and your W-4 indicated enough exemptions, it would lower the withholding. You cannot file "Exempt" unless you do not have any tax liability. If you e-file early, you should have your refund in February.

[Justataxguy]

Something I did a few years ago in my other full time job was estimating when I would have enough withholding for the year when my tax software preview edition came out in the fall and then changing my W4 to 12 exemptions until the end of the year. That was how I got a "Christmas bonus".

[Stick_man]

I believe the employer has the option to consider the bonus as paid combined with the last regular pay using the withholding exemptions on file. Or they can treat it as paid separately at the IRS mandated rate. (Most do this.) If your employer would do the first option, and your W-4 indicated enough exemptions, it would lower the withholding. You cannot file "Exempt" unless you do not have any tax liability. If you e-file early, you should have your refund in February.

i already filed exempt.

what is to stop me from just switching the withholding allowances to like single 2 or 3 ( i am single 1 ) and just having them take out a little more each pay period till the end of the year, than give them an interest free loan of thousands? this is bs

[Burke]

You filed Exempt for 2015? If so, nothing will be withheld all year. Not sure what you mean by the following statement.

[Stick_man]

You filed Exempt for 2015? If so, nothing will be withheld all year. Not sure what you mean by the following statement.

yes on line 7 of my w2 i put in exempt and hr processed it.

after i get my bonus i'll change w2 to single 1 to have more taken out. but at least im not giving 50% of it the the irs. by being overwithheld after i get bonus it should even out