withholding

I just got a good job (ok, better than the one I had). since I am in a low tax bracket and a single father I get more back at the end of the year than I pay in (fed taxes). My old job and my new job pay about the same, but I will have good benefits at the new job. My question is when I filled out the w4 I did it the same as my old job. How come they are taking more fed taxes, (a lot more) in my new job? Last year at the old job i paid in approx. $500 and with the earned income credit I got approx. $2000 back. My new job has a great 401k, for every $1 I put in they put in $3. I would like to reduce the amount (or eliminate since I get it all back plus some) of fed tax I am paying per check and stick that money in the 401k. Can I do this? And how?
Thanks

talk to your HR department and file a new W-4 form. this is a self executed form that determines your witholding based on your number of allowances. if you KNOW you will have zero tax liability, then you can ratchet up your allowances (dependents) to 9! this may effectively stop any witholding at all.

once you get your next pay stub, determine how much less you are paying monthly in fed witholding and increase your 401k accordingly.


here is some pre-reading for you:

http://www.irs.gov/pub/irs-pdf/fw4.pdf

http://www.irs.gov/pub/irs-pdf/p919.pdf

by the way, i would fill out the forms at home prior to seeing HR. you will need your last tax return to do this most effectively. then, if your HR department helps you when you see them, it might be handy to have your tax return then as well.

I was gonna post these links as well...I think the last post summed it up as helpful as possible.

I was gonna post these links as well...I think the last post summed it up as helpful as possible.
Rachael, you are supposed to be saying things like this:

I hear heloc is good, but it didn't work for me. You should try it.

-www.Never_Pay_Taxes_Again_Legally!_Just_ask_Wesley_Snipes_for_details.Com

Rachael, you are supposed to be saying things like this:

I hear heloc is good, but it didn't work for me. You should try it.

-www.Never_Pay_Taxes_Again_Legally!_Just_ask_Wesley_Snipes_for_details.ComMaxwell,

I now think you hit the nail on the head with your assessment.

I think we may need to update the Peppy, Jron and JV 17 FORUM.