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? correctIf 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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