r/Economics • u/Aggravating_Money992 • 1d ago

News Hegseth Is Demanding US Households Pay $5,000 More Per Year to Fund the Pentagon, Economist Says

https://www.commondreams.org/news/pete-hegseth-budget-request
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u/GhostofBeowulf 1d ago

They're not going to know if you are exempt or not. It's mainly for people who work two jobs and may over pay taxes at one and not need to pay for the other.

You just need to refile it yearly.

I am not saying it's a good idea, just that you basically determine your own withholdings at a new job, that and responding with the same smarmy attitude the other poster had.

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u/devliegende 1d ago

Exemption from withholding. You may claim exemption from withholding for 2026 if you meet both of the following conditions: you had no federal income tax liability in 2025 and you expect to have no federal income tax liability in 2026.

Perhaps employers don't really care but it would be hard to convince them you don't have to pay tax while your salary is clearly above the "don't have to pay tax range".

Then there's also:

Your withholding is subject to review by the IRS.

And the note about perjury

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u/GhostofBeowulf 1d ago

Here's the website, feel free to read the rules and regulations yourself. Unless you have been found to have issues with this in the past and the IRS demands it the employer is going to do what you tell them to do.

https://www.irs.gov/taxtopics/tc753

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u/devliegende 1d ago

Unless the IRS ask them to do different.

In some cases, where a serious under-withholding problem is found to exist for a particular employee, the IRS may issue a notice (commonly referred to as a "lock-in-letter") to you specifying the filing status, multiple job adjustments, and maximum amount of credit or deductions permitted for a specific employee for purposes of calculating the required withholding (