The new tax bill just passed and early release percentage tables are available on the IRS website.
So how to figure this up? Two first questions:
What is your pay period,
What is your taxable pay,
and What is your filing status?
I get paid bi-weekly, and my taxable pay is typically 925. However, I purchased cheaper health insurance, and sometimes I get a little overtime, so I am going to bump this figure to 1075. I will be filing married.
Look at the percentage table, for a married filer being paid bi-weekly, withholding doesn't kick in until my post-allowance taxable wages reach $304. The trick is to get your post-allowance taxable wages under the threshold that applies to you.
As a married filer, I also notice that each withholding allowance is worth $142.31. Now let do the math:
$1075 taxable pay - $304 withholding threshold = $771 dollars that I need to reduce by claiming withholding allowances. More math:
$771 / $142.31 = 5.41. So I need to claim 6 allowances to avoid withholding up to at least $1075.
DISCLAIMER & WARNING: I am not a tax lawyer or professional. This advice is intended to help those of you whose tax situation results in -zero- tax liability at the end of the year. Please review your past returns and current pay stubs and consider other sources of income when making a final decision on allowances you claim. If you underpay your taxes you could be hit with significant fines and penalties.