The gamecock. (Columbia, S.C.) 1908-2006, March 04, 1987, Page 3, Image 3
i* Money
Wednesday, March 4, 1987 ?/ 3
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I Withholding
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Instructions for Form W-4 ?;?r~ V---3 .
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THOMAS HUMPHREY/Th* BmKock
Students can get W-4 forms from the Internal Revenue Service in the Strom
Thurmond Building on Assembly Street. Additional worksheets to determine the
withholding status can be ordered by calling 1-800-424-1040.
j seniors! J
f SENIORS! Don't forget to sign up for the i
/ organizations listed below. Sign up is in the \
) Placement Office, 6th Floor, H. William Close (
J Building, and the deadline is 7:00 P.M., C
S Thursday, March 5, 1987. /
r Builders Transport \
1 Clark Checks I
I Federal Bureau of Investigation /
{ First Investors 1
/ Hit or Miss V
) J.B. White's I
\ NCH Recruiting Group )
a \ The Comptroller of the Currency )
f Touche Ross \
) US Army Club Management Programs I
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liAtmsaMSSB nT"iiTiiiTiiri i ,
Sturlnntc m
mm Ml IK
By CANDY M. BARR
Money editor
Working students should make sure they
get a withholding allowance form, better
known as the W-4, from their employers, fill
it out and get it in as soon as possible to avoid
having to pay back money, an Internal
Revenue Service agent said.
Being a student does not guarantee exemption,
Columbia IRS agent Hank Chardos
said. Line 6-C of the W-4 pertains directly to
students.
"Students should look at that question as
far as the year is concerned," he said.
"The bottom line is that everyone has to
detemine whether they are liable for income
tax. So whether you're a student or whether
you are 70 years old, the law provides that,
depending on how much gross income you
make, if von excepH a rprtnin vrm will hf?
subject to incomc tax," Chardos said.
The maximum amount a student can make
while exempt is $3,560 a year.
Students face problems when filing if they
were not continually employed, Chardos said.
"They may have one job that will last
several weeks and another job that lasts
several months," he said.
Chardos said students should look at all of
the jobs they have had during the year and
combine all income sources, such as interest
on a savings accounts and portions of their
grants, to sec if they are subject to incomc
tax.
Starting this year, tax laws concerning
grants, scholarships and fellowships have
changed.
uniy cosis lor luiuon ana Dooks can be excluded
from scholarships and fellowship
totals. Cost for housing and food will be a
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Qr*) Serologicals,
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254-6537
Tl
Anywhere Greyhound goes.
Musi present a valid college student I I) ?.urd
Inc., and other participating carriers, (ieriain restru
ay owe IRS
part of a student's taxable income.
Chardos said students who work part time
and get grants may be surprised to learn they
owe money because they did not consider the
housing and food portions of financial aid
when filling out their W-4s for the part-time
job.
"The W-4 form is an ability for employees
to pay as they go, so if they're getting a salary
from their employers, they also have amounts
being withheld for federal income tax purposes,"
Chardos said.
The l ax Act of 1986 took effect on Jan. 1,
ana Chardos describes the changes as
"illuminous" because they will effect
everyone.
"The big difference between the old W-4
forms and the new W-4 forms is that the old
W-4 was basically counting the number of
people you were supporting or the number of
mouths you were feeding," he said. "Now the
new W-4 will be taking this into consideration,
plus your itemized deductions, tax
credits and wages that your spouse may have
from another job."
Chardos said the IRS wants people to think
in terms of "withholding allowances" instead
of "exemptions.
"The new W-4 will not equate to the
number of dependents you are claiming on
your 1040, and that will be a real big change
from before," he said.
For example, a family of four will not
automatically assume four withholding
allowances. Due to child-care credits and
itemized deductions, the family of four could
claim seven allowances.
Chardos said although people are not
allowed to claim more withholding
? ? r
r? y | <t? I Clas:
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3arn. Call for Aflordal:
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for 1987
allowances than they are entitled to, they can
claim less.
Many conservative taxpayers, who would
rather get returns than pay back, tend to
claim less.
"By law, an individual can claim fewer
withholding allowances, so if the worksheet
says that 1 am entitled to two withholding
allowances, 1 can claim zero," Chardos said.
However, Chardos warns that people who
just write zero withholding may not always be
entitled to a return because of their individual
situations.
They may have enough dividend income,
trust income, or interest income to actually
owe the IRS at the end of the year.
Chardos said this is the reason why
everyone should sit down and work out the
worksheet.
"Regardless of what their filing status was,
lau/ oil O m am *** ? ? ~ ? ?
vsj ?> < UI1 Viii|yiu;v,u aik It^UlIl'U IU 1IIC U I1CW
W-4 by Oct. 1.
"It gets a little academic to file on Oct. 1
because three-fourths of the year has already
gone by, and your withholding allowance will
not have been correctly computed. That's
why the IRS is trying to encourage employers
to distribute the W-4 to their employees early,"
Chardos said.
Students with questions about their individual
W-4 can call 1-800-424-1040 or come
by the IRS office in Room 653 of the Strom
Thurmond Federal Building on Assembly
Street.
Or they can order two free publications entitled
"Is My Withholding Correct?" ?
number 919 and "Tax Withholding and
Estimated Tax" ? number 505 by dialing
1-800-424-3676
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