[net.taxes] Working for a part of a year

ark@alice.UucP (Andrew Koenig) (07/05/86)

> A question: someone is working for 3 months (a summer job).
> He fills W-4 to have his taxes withheld.  Then the taxes 
> are computed as if he would work whole year, i.e. way above
> his correct bracket.  Can one put an arbitrary number in
> the box
>
>   'allowances for credit(s) and/or deductions'
> 
> as long as at least 80% of the correct tax is paid?

I think so.  That's a standard technique used by homeowners
to get their interest deduction now rather than later and
is perfectly legal provided that 80% of the tax is paid
(or one of several other conditions applies).