Working for the family business. Not self employed.
Is it possible to have zero tax withheld from my paycheck & just make estimated payments (1040-ES) every 3 months? I would rather get 100% of my pay each pay period, then just mail a check to the IRS every 3 months.
I don't want to lie or pay a penalty. I just would rather keep the with held amount in my bank account, grab a bit of interest, then pay the IRS every 3 months.
I'm better at managing money than the family. This would shift the burden of paying my share of income tax every 3 months.
owner operators that work for delivery service companies pay their taxes at the end of the year. they don't deduct any taxes off their pay every paycheque.
the smarter ones pay theirs every quarter so they don't get buttfuck at the end of the year with taxes.
i live in canada by the way.
If you owe less than $1,000 a year, then the IRS shouldn't assess penalties. The only time they do is if you are self-employed and don't make estimated tax payments, pay late, or some shit like that. There might be other small reasons here or there that they'd penalize you, but if you don't owe over 1,000, then they probably won't take interest in you.
If you want to be perfectly safe, then you have to send in 100/110% (which depends on which tax bracket you're in) of your last year's federal tax liability. Then you shouldn't have a penalty (again, unless you're doing screwy things with self-employed quarterlies).
So yes, you can do this. In most cases, the IRS won't care. Just send them in on time in equal installments that are at least 100/110% of your previous year's tax liability.