Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121218  
Subject: Re: Taxable income and W-2 Date: 9/20/2000 8:44 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
If I start a new job mid-year, and I don't have income before that, my taxable income should be
just from that month to Decemeber 31 right?

correct
If that's correct, is it also true that the withholding
from each paycheck for tax will be more than I should pay, because the withholding is calulated
based on _annual_ salary, and since now I don't earn for a full year worth of money, I shouldn't
pay as much?


correct again

And if so, can I (I mean if it's legal to)increase the number of allowance on my W-2 on purpose
(i.e., more than the result calculated by the worksheet) so that taxes will be withheld less?


Yes. You can even reduce it to collect just enough to equal 1999 taxes and be legal with no penalty. You cannot, however, reduce it to less than you expect to have to pay, or (if less) a safe harbor (such as the amount of last year's tax), without possibly being fined. ed
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement