Q: What is the fine if I claim exempt on my federal taxes with the intention of paying them at the end of the year?
So no federal taxes will be withheld and I would send a check when I file at the end of the year.
A:
If you do not have taxes withheld or pay estimated taxes you may be charged an underwithholding penalty. If you owe less than $1,000 then you will not be charged the penalty. If you make some payments but not all then you must have paid at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is less.
I strongly encourage you to have at least some taxes withheld. I have had many clients who plan on paying their taxes at the end of the year and then end up not having enough to pay the taxes or have something happen to them that prevents them from paying the taxes.
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