"DJ Kazuya" <djkaz...[at]earthlink.net> wrote:

- quote -

The IRS web site has a withholding calculator that may help.

http://www.irs.gov/individuals/artic...D96196,00.html

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"DJ Kazuya" <djkaz...[at]earthlink.net> wrote:

- quote -

Start out with 2 and see how much they withhold for taxes(
not SS). Multiply by the number of paychecks and see if it's
enough to cover your full current year income, including
self employment. If not, increase it to do that (or at
least 90% of it), or if it's lower 100% (or 110% if your
last year's AGI was over $150,000) of last year's tax. Then
DO NOT pay an installment for the first quarter. Use the
withholding to cover it and your SE taxes. Net result is
you get the use for a full year what you would have paid for
the first quarter. Invest it at 5%.

The above is manipulating IRS form 2210 rules to your
advantage. Read it.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"DJ Kazuya" <djkaz...[at]earthlink.net> wrote:

- quote -

Fill out the worksheet on the W-4 form to determine the
appropriate number of exemptions for your situation then
fill out the w-4 using that number of allowances. If you
know about how much the taxes will be from your self
employment (incl SE tax), you can divide that amount by the
number of pay periods left in the year and put that amount
on line 6 of the w-4 form.Then next year, remember to remove
the line 6 amount by filling out a new w-4 with your
employer.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

After working as an independent contractor for the past two
years, I was hired to a full time position effective April
1. My question is how should I handle filling out my w-4 to
compensate for 3 months of no withholding? I guess I don't
understand how the allowances taken correspond to what is
taken out. If I take 2 allowances, how do I figure how much
is going to be taken out of my pay?

Kaz

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >