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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 121182  
Subject: Re: Taxable income and W-2 Date: 9/20/2000 8:44 PM
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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
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