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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? 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?
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?
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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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In addition to what Ed told you, make a note on your calendar to do an amended W-4 January 1. Your bumped-up allowances will get you in trouble for 2001 if you don't adjust them.

TMF ExRO
Phil Marti
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Your withholding is based on your earnings for the pay period. There is a table for each kind of pay period including 'miscellaneous'
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