"Plunker" wrote:

- quote -

Ask your payroll office. If they can't tell you, check the withholding
instructions in IRS Publication 15 and you can figure it out from there.

Before you adjust, make sure you've considered any severance you might get.
If it's paid through the payroll system it will also be affected. Also find
out whether you need to do something regarding state withholding.
--
Phil Marti
Clarksburg, MD

--
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x-no-archive: yes

- quote -

Apologies for needing the hand holding here, but how does one
make that calculation? How many exemptions is enough?

--
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- quote -

I once found myself in a situation where I had already paid all the
tax I would owe by October 1 or so. So I calculated how many
exemptions I needed to claim to have zero withholding the rest of the
year, and it was something like 20.

Employer didn't bat an eye, IRS didn't bat an eye, I got my money,
everyone was happy.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

"Plunker" wrote:

- quote -

Correct.

- quote -

In order, yes and no.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

x-no-archive: yes

- quote -


Thank you very much for the responses. I took a look at this with my
employer and found the following restrictions to claim exemption from
withholding:

I claim exemption from withholding and I certify that I meet BOTH of
the following conditions for exemption:

1) Last year I had a right to a refund of ALL Federal income tax
withheld because I had NO tax liability;

AND

2) This year I expect a refund of ALL Federal income tax withheld
because I expect to have NO tax liability

The first statement is not true, so I am told I can not claim
exemption from withholding. Having been told that, my current
allowances are set to 7 (married, family) which has permitted my to
owe only very little extra over what was withheld during the year.
Can I set this to a higher number of exemptions and have less
withheld? Is there a maximum number?

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 26, 1:15*pm, "Paul Thomas, CPA" <paulthomascp...[at]bellsouth.netwrote:
- quote -

On the basis that what you make before termination plus unemployment
and income from savings for the rest of hte year will be less than
your Standard Deduction and Personal Exemptions, you can honestly
reduce your withholding to zero--until you are reemployed.

ed

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

"Plunker" <PlunkerEnglish[at]gmail.com> wrote
- quote -



Ya do what ya gotta do.

Just have enough withheld to cover the known income, and when your income
increases later, make sure you pay in from that income as well.

I'd run a quickie return based on the known income for your 2009. Use that
number as a target for withholding / estimated numbers. Remember that
unemployment is taxable - currently anyhow - so account for that as well.




--
Paul A. Thomas, CPA
Watkinsville, Georgia

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

x-no-archive: yes

I just received a layoff notice from my employer. My termination is
effective in one month, and I expect to receive a few weeks severance
pay. My expectation is that I will not find employment before my
severance runs out, so I am trying to fortify my ability to shelter
and feed my family until full time work can be found.

Among so many other things, I thought of reducing my W4 withholding.
I am certain my IRS burden will be less in 2009, and I really need the
cash now. Am I being too clever?

Thanks in advance.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >