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Author: maracle Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124931  
Subject: Withholding when working part of the year Date: 2/5/2008 1:45 AM
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In 2009 I may leave my job early on in the year and not work again during that year. I'm trying to figure out what methods I can use to prevent having way too much tax withheld. The 2 methods I can come up with are:

1) Ask my employer to use the part year method for withholding. I work for a large company with plenty of bureaucracy so I expect I'd just hear laughter on the other end of my phone if I tried this one.

2) Manipulate my W-4 exemptions to lower the amount withheld to be where I expect it. This might be tricky to calculate, and I'm not quite sure if it is allowed. To use an alternative method of calculating exemptions, publication 505 says that "it must take into account only the items of income, adjustments to income, deductions, and tax credits that are taken into account on Form W-4." W-4 doesn't have any place for income so I don't really know how to interpret this.

Are there any other methods that can be used? I'm assuming once it has been withheld there is no way to request a refund until the next january.
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