I am wondering if I am able to claim as "head of household" and also claim my live in girlfriend (who I support as she is in school and works as a waitress a few nights a week bring home very little) as a dependent. I have searched and am unable to find a clear answer on this issue.
A second question... Is there a way to have little to no taxes withheld from my paycheck throughout the year so that I may keep that money in my own savings account until time to file the actual return and then of course pay the correct amount owed? I have found contradicting answers to this question, including the chance of perjury, fines and jail time for interest penalties -- which I do not understand since the correct amount would be paid at the end of the year.
Any help or guidance is appreciated.
Thank you

1. You are not head of household.
2. You can claim your girlfriend if she lived with you all year, did not earn more than $3,500 and the relationship does not violate local law.
Read about Qualifying Relative:
Your U.S. Tax Return: Requirements for claiming a dependent

As a follow-up to "A second question... Is there a way to have little to no taxes withheld from my paycheck throughout the year so that I may keep that money in my own savings account until time to file the actual return and then of course pay the correct amount owed?"

No. If you claim to be exempt on your W-4when you are not in fact exempt, the IRS can come back and change your withholding status with your employer (single and 0), which I have not been able to un-do quickly enough to keep it from causing a hardship to my client. --This did happen to someone, before he became my client, just this past August.

The U.S. has a pay-as-you-go system of taxation, which is the "logic" behind withholding taxes from your check while you have the ability to pay. You idea would be in direct conflict with the "logic." At minimum, you would be subject to late-paying penalties, plus interest.

If you do not mind a suggestion here, perhaps a better way to go would be to see if you should increase your withholdings on your W-4 to an amount that ensures that withholdings for the year will be equal to your total taxes (as estimated) for the year. You would not get the refund that so many people enjoy, but you also would not be lending the government your money interest free.

Can I claim my girlfriend as a dependent on my federal taxes, we live together and she has no income?

You can claim your g/f as dependent (as Qualifying Relative) only if
1. She lived with you all the year,
2. She did not earn more than $3,500 in 2008, and
3. Your relationship does not violate local law.

LoneStar:

Call the local courthouse about whether your relationship violating local law. I highly doubt that it does.

However, you MAY find that you are considered to be "married under common law". Such marriages ARE recognized as valid by the IRS.

If so, you can then file jointly.