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Path: utzoo!watmath!clyde!burl!ulysses!ucbvax!hplabs!analog!kim
From: kim@analog.UUCP (Kim Helliwell          )
Newsgroups: net.taxes
Subject: Adjusting your withholding exemptions
Message-ID: <196@analog.UUCP>
Date: Mon, 3-Mar-86 18:46:22 EST
Article-I.D.: analog.196
Posted: Mon Mar  3 18:46:22 1986
Date-Received: Fri, 7-Mar-86 04:34:50 EST
Organization: Analog Design Tools, Menlo Park, CA.
Lines: 30

>   At the beginning of this year, my wife and I moved into a new house.  Of
>   course, the intestest part of the paryments are tax deductible.  Is it
>   legal to increase the number of deductions on a W-4 so that we won't have
>   to have a huge tax refund at the end of the year?  I hate given interest
>   free loans!  If so, how do I go about figuring how many deductions to
>   take?  Ask our local company employee office?  Thanx.
>   
>   			-- Brad Brahms
>   			   usenet: {decvax,ucbvax,ihnp4}!trwrb!trwspp!brahms
>   			   arpa:   Brahms@usc-eclc
>   
>   

Not only can you use the W-4 to set the number of deductions and adjust
your withholding, it is also possible to calculate directly your
projected tax liability, divide it by the number of pay periods in a
year at your place of employment, and request that your payroll
department take that amount out as a "BLANKET AMOUNT" per pay period.
This is absolutely legal, and works for both Federal and State
(California, anyway!), and I have done it for years.  Doing this, I
have always managed to be owed some, and so have avoided having to file
quarterly estimated tax returns.  My calculation usually involved
adding 5-10% to the raw weekly amount as a cushion so that a bad
estimate of one deduction won't lead to disaster!

You should remember that the important concern for the IRS is that you
not owe THEM too much at the end of the year ( > 200-400$, I believe).
They don't like to give interest-free loans, either!

hplabs!analog!kim