over claiming exemptions on taxes.

[ctcsoft]

illegal or does it matter as long as you pay any taxes owed when you file.

for instance. can you over claim on your exemptions for 3 months. then back it down to 0 exemptions for 6 months. then file taxes and pay what you owe if any amount??

 

[chimmytime]

You can claim as much as you want during the year, but you have to report the proper amount on your tax return, or else you'll get auditted.

 

[kranky]

There's an underpayment penalty that can apply if you don't have enough tax withheld.

Take an extreme example: claim so many exemptions that zero tax is withheld, and then pay your entire federal tax bill on April 15. You can't do that because the IRS expects to see money from you throughout the year.

I don't know the exact rules off the top of my head but you can find it in IRS Publication 505.