First Year Tax Break for College Grads

College graduates lucky enough to be starting a full-time position, take note:  Use part-year withholding to hike take-home pay by having less tax withheld.

The standard federal withholding tables assume you are working for the full year when figuring how much income tax to take out.  The part-year method sets withholding according to what you’ll actually earn during the portion of the year that you work.  Employees working less than 245 days in a year can ask firms to use this method.


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