Question for the Tax Gurus...

[CoolTech]

I had an interesting situation this year,

I was unemployed for the first 4 months of the year and received approx 2, 400 from unemployment.

I then received a job and will have approximately 28,000 in income from it.

I now have yet another job (perm) which I will receive approx 8,000 over the next 2 months.

Also, I will be itemizing deductions because my medical expenses will exceed 7.5% of my adjusted gross income once I start contributing to my 401k this month.

My question is, how do I determine how many withholdings I should put on my W-4 for the new job?

 

[Reel]

http://www.irs.gov/individuals/article/0,,id=96196,00.html

 

[FoBoT]

they aren't exactly related, just put 1 for you and add 1 for each dependent, if you have a spouse that doesn't work, maybe add 1 more if you don't want quite as much withheld
you might want to re-evaluate it in January if you expect your job situation to be stable in 2007

if you are concerned about having to pay tax this year due to all that stuff, then just go with 1 for now

 

[sswingle]

The number of jobs you worked/are working doesn't have avything to do with your withholding... 😕

As someone else said. 1 for yourself plus 1 for dependants.

 

[EagleKeeper]

You will have to pay taxes on the unemployment income.

Also, even though the medical may have exceeded 7.5 of the gross income; you still can only write off the excess above 7.5 against the Schedula A limits. So you will have to also have enough other deductions to make it worth itemizing.