I'm considering adjusting my withholding for next year to reflect 9 allowances and evaluating the amount withheld around November and having our payroll dept. withhold an additional amount from my last 8 paychecks (paid weekly). The additional amount to be withheld would be the difference between what I expect to have withheld and my prior year tax liability (does cover 12 months), plus a small safety margin per paycheck, just to be sure. The questions I have regarding this:
- Is this considered "claiming too many allowances" on my W4? More improtantly, is this considered fraudulantly claiming too many allowances?
- I believe the 100% of prior year tax rule enables me to avoid having to pay a penalty, regardless of how much I owe. (Gross income under 0,000). Is this correct?
- If I read correctly, if I increase my withholding at the end of the year, it still counts as if it was paid throughout the year. Again, is this correct?
- Can I do the same for my state (Missouri) income taxes, and are the answers for the above questions the same. Bottom line: WILL I GET IN TROUBLE FOR DOING THIS?
TIA. SS
>
>
>
>
>
>
>
>
>