<prompt> Human: So a friend at work tells me that if I change my tax exemption status to EXEMPT on my W4 after this regular paycheck, the next one that I get will be tax exempt. The next one has a pretty large bonus, thats why this came up in conversation. Apparently all I need to do is change it back to non-exempt right after getting paid and I get away from paying taxes on this big check. He also tells me I can do this twice a year without recourse. What exactly is going on here?  <response>: You avoid withholding, youll pay the exact same amount in taxes either way. Its just a matter of whether you pay more now and maybe get some back next April or less now and maybe have to pay extra next April.Keep in mind that if you owe too much to the IRS when you file, theyll tack on a penalty but the penalty isnt much. 