W4 Tax Witholdings?

Question

I'm planning on working 3 jobs this year. I'm a full time student and I should get about $10,000 altogether at the end of the year. I understand both arguments on too much and too little tax being withheld (get refund check in Spring or get as much back now and earn interest)

Few questions: What should I withhold (recommendations and options)? Usually I've put "Exempt" but I don't think I'm legally able to now that I'm making above $5,350.

I've seen the statement of 0 allowances being the maximum tax withheld but how do I figure out what percentage that would be?

Thanks so much for your help. It is much appreciated!

Answer 1

If you expect to make $10K, then don't put exempt.

If you work three jobs, chances are that even claiming zero on your W-4, you could still end up owing. The reason is that each job takes out as if it's your only job, so would take out little or nothing, but when you file your return, your three jobs are added together and your tax is calculated based on the total.

Zero isn't actually the max - you can ask to have an extra amount taken out per paycheck.

If you're a dependent, your tax could be somewhere a little under $500. If you're not a dependent, probably around $150. Make sure you have that much taken out. If it doesn't look like you will, ask to have more withheld, unless you don't mind writing a check when you file your return next year. In either case, you'd be below the amount owed where you have to pay a penalty.

Answer 2

Do the withholding worksheet that comes with the W-4. Also get a copy of Pub 919 from the IRS, this is the Pub that deals with withholding and has the charts as to the amount being withheld. You can get that by ordering a copy from the IRS website' www.irs.gov