Joe C wrote:

- quote -

You mean claiming 9 "allowances"; not exemptions. Anyway.....

If your employer will allow this and overlook the fact that
you'll be claiming excess allowances to which not entitled
(probably) and which they should not allow you to do, you
can slip by. And they probably won't care.

ChEAr$,
Harlan Lunsford, EA n LA

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Uncle Sam will NOT be hollding your mney for free--you owe
it to him when earned. In order to reduce it you must file
a signed W-4. Read its PERJURY clause closely.

ed

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Joe C wrote:

- quote -

Employers generally withhold at a flat rate (30%?) from lump
sums, bonuses, and commissions. The withholding rate used IS
NOT dependent on the number of withholding allowances you
claim on your W-4 form.

What you can do is sit down and estimate your total taxes
for the year, taking the bonus into account. Then subtract
the bonus withholding and divide the remainder by 25. That
is the amount that should be withheld on each of the other
pay periods. Adjust your W-4 allowances to ensure that
amount is withheld. You may have to have extra $$ taken out
of each paycheck.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"Joe C" <no-more-spam[at]no-spam.com> wrote:

- quote -

The easiest way would be to ask your employer to use the
miscellaneous payment method of calculating withholding
rather than treating it as part of your regular pay.

In any event, after the payment has been made, you can take
a look at your estimates for the rest of the year and adjust
your withholding as necessary.

--
Phil Marti
Clarksburg, MD

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I am a salaried employee paid bi-weekly who will
receive an extra lump sum payment in the beginning
of next year. I do not want Uncle Sam to hold my
money for free for most of the year. Is there any
way to reduce the amount withheld on the lump
sum? I will make sure I do NOT owe at the end
of the year! Would claiming 9 exemptions for a
few pay periods help at all?

Thanks,
Joe

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >