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-   -   Withholding Federal and State Taxes in NYC for last paycheck of year (https://www.askmehelpdesk.com/showthread.php?t=292428)

  • Dec 15, 2008, 11:23 AM
    ewing8888
    Withholding Federal and State Taxes in NYC for last paycheck of year
    I am looking to change my withholding status for my final monthly paycheck of the year in a few weeks. I expect the amount to be 15K. I’m looking to make an investment in early January and would like to find a way to pay no or minimal taxes on the last monthly check. I figure the amount in taxes should be relatively equivalent to the expected refund. I was wondering if anyone could advise on the best method to do this.
  • Dec 15, 2008, 11:38 AM
    ebaines

    There's really no good way to do this. If they are withholding so much in tax that you normally expect a refund of this magnitude, you should submit an updated W-4 to your payroll department. Do it before the next paycheck and you should see a reduction in the amount of withholding. However, you can not claim exemption from taxes, so you can't mak it so that no taxes are withheld, even for just one paycheck.
  • Dec 15, 2008, 12:32 PM
    ewing8888
    Thanks for the advice. Do you think it may be better to temporaily change my status from W2 to 1099 for the last paycheck of the year?
  • Dec 15, 2008, 12:52 PM
    ebaines

    I suppose if your company would let you simply change your status for one paycheck that'll work. However, it raises other issues that may make this less than desirable - such as having to file a schedule C with your tax return, and paying social security as self-employed worker. What other benefits might you lose - medical insurance, life insurance, a 401(k) plan? Personally I think the hassle in order to get your money a month or two earlier than if you simply filed for your refund as early as posible in January is probably not worth the aggravation.

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