Second job and w-4 form

[Cregar]

Because of hours being cut at work it looks like I am have to get a second job :-(

I was wondering what I am suppose to fill out on the W-4 form for the second job. Do I claim "0" allowances or do I put in the allowances I am claiming on my primary jobs W-4 form.

Thanks for any help

Craig

 

[will_cbe]

The fewer allowances you claim, the more money they will withhold. Be warned, the tax man will eventually tax your yearly income, not what you make per job.
Here's an example.
In job A you earn 20k, and they withhold 4k.
In job B you eark 5k, and they withhold 200 bucks.
April 15th rolls around and Uncle Sam sees you've earned 25k. He decides you owe a total of 5k for taxes. Since he is already holding $4,200 of your hard earned money, you now owe an additional 800 bucks.

I prefer to have them take too much, as opposed to too little.

The numbers have been simplified to protect the innocent.

 

[BuffaloSabresBrewer]

I agree I find it alot easier to receive a check than to dig up the cash and hand it over.

 

[homebrewer_99]

Getting money back from the IRS is great for people who can't control their money.

You "think" you are getting a refund, but you're only getting your own money back WITHOUT interest.

I always underpay and write them a check for the difference. This way the majority of MY money is producing income in the form of interest.

My money earns over $4k a year in interest, but I only have to pay the tax on it and get to keep the rest.

 

[Bobby_M]

Amen brother. I got back $4500 last year and I was extremely pissed at myself for not adjusting the W-4 when I had my second child. It won't happen again.

 

[homebrewer_99]

Amen brother. I got back $4500 last year and I was extremely pissed at myself for not adjusting the W-4 when I had my second child. It won't happen again.

Dang Bobby, that's just over $371 a month you overpaid your taxes...I'm sure you can think of a way to invest that much, whether it be in brewing supplies, diapers, gifts for momma, etc.

 

[menschmaschine]

+1 on not lending the government money at 0% interest. I like to walk the line to not have to pay anything, but play it safe by getting a small refund.

 

[Brew-Happy]

Getting money back from the IRS is great for people who can't control their money.

You "think" you are getting a refund, but you're only getting your own money back WITHOUT interest.

I always underpay and write them a check for the difference. This way the majority of MY money is producing income in the form of interest.

My money earns over $4k a year in interest, but I only have to pay the tax on it and get to keep the rest.

+10%

Why let the gov have your money for free when you can keep in an account for % earned???

That is why I prefer to underpay a bit and earn $$!

 

[Bobby_M]

Dang Bobby, that's just over $371 a month you overpaid your taxes...I'm sure you can think of a way to invest that much, whether it be in brewing supplies, diapers, gifts for momma, etc.

You're not kidding. I haven't quite figured out what changed so drastically between 06 and 07 other than the new baby. I didn't think the child credit was going to be such a large effect. Could also have something to do with my less than usual gains in the market. In any case, I'm going back to owing, but without the underpayment penalty.

I find it sad that people live such a fine line from paycheck to paycheck and feel like they NEED to overpay in order to stay out of trouble. Don't spend every dime you earn. Taxes aren't the only thing that can sneak up on you.

 

[homebrewer_99]

You're not kidding. I haven't quite figured out what changed so drastically between 06 and 07 other than the new baby. I didn't think the child credit was going to be such a large effect. Could also have something to do with my less than usual gains in the market. In any case, I'm going back to owing, but without the underpayment penalty.

I find it sad that people live such a fine line from paycheck to paycheck and feel like they NEED to overpay in order to stay out of trouble. Don't spend every dime you earn. Taxes aren't the only thing that can sneak up on you.

I hear you. Great!

I've never had an underpayment penalty. The trick is to make it fall about even, 0 balance.

Since paying off my house I usually get about $76 back from state and pay about $80 in Fed.

 

[Cregar]

Thats what I am getting at...currently I have it set so when I file at the end of the year I am only getting back around $200.00.

I know adding a second job might make it more difficult to figure out what I need to put on my W-4.

I don't like not making anything on the money Im loaning them.

 

[bad coffee]

every new job I do is a new W-4. if it's going to be a short gig, I usually file S-0. That way they take out the most taxes on jobs where I don't make more than a couple of grand.

My normal longer-paying jobs I file S-1 or even S-2 so they don't take so much out.

I once did a job and files S-9, then forgot to change it back when I got re-hired by the company that year. I ended up owing the IRS $5k for the year... OUCH. Check with your HR dept. and see if you can re-file a W-4. If you can:

Figure out what you're going to make for the year from each job, and then total them up.
Look up what the tax liability will be.
Figure out how much tax you will be paying on Job #1. Take your weekly/bi-weekly fed payment and multiply it, then subtract from the total fee.
Divide what's left of your tax liablity by the number of weeks you'll be working job #2. This will be your rough weekly payment you need to make

File your normal W-4 for your new job. Then wait to get paid.

If the withholdings are going to be much more each week than the liability, change your W-4. Check your next paycheck and see if it's closer to what you want. If you've way overshot, you might need a 6pack o homebrew to smooth over the HR people if you need to change it again...


But in reality, it doesn't matter what you put on the W4. Only on your tax return does the IRS really care.