Hi all,
From 1 Jan to 31 Aug of this year, I was paid by a fellowship program; it expired at the end of August. They did not do withholding, so I have been using form 1040-ES to pay estimated taxes each year (so for all of last year & 3/4 of this year, I have had $0 withheld and have paid quarterly tax).
I'm starting a job in Jan 2013 (roughly). Until then, I will be working part-time for the same company. I arranged to receive my signing bonus immediately and I will also be receiving pay from the part-time position.
Right now, I need to fill out form W-4. What I want to know is:
Can I ask them to withhold NOTHING?
How do I ask them to withhold nothing? (99% sure I don't qualify for exempt status.)
Using 1040-ES, I have been (and will be) paying quarterly tax that equals my *total* tax liability from 2011, call that $X. This year, counting part-time & signing bonus, I'll make $X+Y. Since I'll have already paid $X, my understanding is that I can pay the tax liability for $Y when I fill out Form 1040 next April.
Thus, I want NOTHING withheld on my paychecks from my new employer for this year. When I start full-time, I'll fill out a new W-4 and withhold the proper amount.
If that is not possible, how is the actual amt withheld computed? Is it based on what I would make if I worked for a whole year at the same pay? (Even though I'm starting 3/4 of the way through the year?)
TL;DR:
I want my new employer to withhold NOTHING for taxes. How can I do this?
Thanks!
From 1 Jan to 31 Aug of this year, I was paid by a fellowship program; it expired at the end of August. They did not do withholding, so I have been using form 1040-ES to pay estimated taxes each year (so for all of last year & 3/4 of this year, I have had $0 withheld and have paid quarterly tax).
I'm starting a job in Jan 2013 (roughly). Until then, I will be working part-time for the same company. I arranged to receive my signing bonus immediately and I will also be receiving pay from the part-time position.
Right now, I need to fill out form W-4. What I want to know is:
Can I ask them to withhold NOTHING?
How do I ask them to withhold nothing? (99% sure I don't qualify for exempt status.)
Using 1040-ES, I have been (and will be) paying quarterly tax that equals my *total* tax liability from 2011, call that $X. This year, counting part-time & signing bonus, I'll make $X+Y. Since I'll have already paid $X, my understanding is that I can pay the tax liability for $Y when I fill out Form 1040 next April.
Thus, I want NOTHING withheld on my paychecks from my new employer for this year. When I start full-time, I'll fill out a new W-4 and withhold the proper amount.
If that is not possible, how is the actual amt withheld computed? Is it based on what I would make if I worked for a whole year at the same pay? (Even though I'm starting 3/4 of the way through the year?)
TL;DR:
I want my new employer to withhold NOTHING for taxes. How can I do this?
Thanks!