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Money I Wednesday, April 8, 1987 ' 3 J Most students 1 taxes for 1987, By CANDY M. BARR Moacy editor Most students who work part time will see a reduction in their 1987 taxes, says an IRS spokesman. "A single student won't even have to file a return if he is making $4,440 or less," IRS Public Affairs Officer Michael Quinn said. The maximum amount students can make in 1988 without filing is $4,950 and in 1989, $5,000. "I think once they (taxpayers) find out that these figures are going up and up, many will find out that they will drop off the tax rolls completely," Quinn said. I The IRS estimates about 6 million people nationwide will no longer be required to file tax returns. "The old filing status was a lot less ? $3,560. "That's going to be the biggest advantage on the front end," Quinn said. But because the new laws are defined as *4r^v#>nii*>_nMitrnl " thev ar? desioned not to collect more money, but to shift the burden of tax collection. "We've got the same number of dollars coming in, but the scales are tipping differently. The corporate side will pay a little more, and individual side will pay a little bit less." Quinn said because most students will fall on the I individual side, instead of the corporate side, students should pay less. Quinn said if a student thinks he will make less than $4,440 in 1987, he should claim exempt status Lt. ur a u: .... * i..... ... UU IU5 TV -* WlUUIUIUUlg SlHICIUCIIl ?nu uavc I1U IttA withheld, but he should be careful because if he does exceed the amount, he is subject to income tax. "If you put exempt status on your W-4 form and Career Center offers indi By CANDY M. BARR Ralcy said nov Money editor * students to write hnu/ tr? cnmmor nr n#?vt 1 V/11V~IV/~VI1V OUTIVV VII nwr? tlMiiuiivi v? Itv/tb 4 ^ improve your resume and Raley's first workshops providing resume tips resume preparati< are available at the Career two-hour worksti Center, says a Career Center "Don't have spokesman. don't try to be ci "Colored pap< Mike Raley, the alumni assis- no-no. It doesr tant director, said the resume sional." He sai< critiques are held from 2 p.m. to use colored pap 9 n.m. everv Wednesday at the Dick a conservat Career Center on the sixth floor grey, beige or of of the B.A. Building. A student ^ can sign up for the resume To participate ^ workshop at the same place. Raley said stud< Him in MiranitnT CAROLINA PR( PRES ~~^i t SBBfe?9 O"* Thaw E? Monday 6 7*??PM *AI HH| 7?PM u Tucwtey T Noon* IMP* Cr W* 00 PM Ai WrdneuUy* 7A*)OPM ti 7 JO PM Lj, Thunday* 1000 AM l>? ft HI 7 A V )0 PM -K Kriday 10 1000 AM St 4 CO rM aBfflF 7av?PM *> EBB ijoo m ISp? SMwiir, II *00 AM 51 VH 100 PM o lj BH ' \ ISpSy:ii:: 7 a v w pm -1 s im?IM > f: ComiiMMMis 95 Pi f A L| rnr? mi r? pnw tut. m pan i?j mhwm will pay less IRS predicts that Hnllnr nmmint thnn nil of a Kiiddpn ? bam ? you're going to get socked with a great big bill. You'll end up having to pay tax," Quinn said. Quinn said depending on the individual situation, a person who does claim exemption, but exceeds the level will probably have a penalty for not paying the proper amount of taxes. The new law requires that a taxpayer pay at least 90 percent of the income tax due from withholding on his paycheck. If a student is not sure if he will exceed $4,440, Quinn suggests the student have the tax withheld from his paycheck anyway. If he does not go over the level, the student could then file a tax return and get the money back. Another change taking place in 1987 taxes is that only portions of stipends and grants for students mi . r a i. c i : 1 win remain lax iree. Amuums useu ior uuusiug uuu food during the school term will serve as taxable income. People who file the 1040 EZ will not be able to deduct for charitable contributions under the new tax law. Only itemizers will be able to deduct those contributions. 44If the tax brackets have been reduced, the value of a charitable contribution, or any deduction for that matter, is somewhat less." Quinn said the highest tax bracket under the new law is 28 percent, compared to 50 perccnt under the old law. TV?j* 1DQ ttrill Viova turn nut in /?arlvr A 1IV IlXkJ mil I1UTV IfTV pUl/IIVUIIUIIO VUV 111 VWII/ May to help taxpayers adjust to new laws. Quinn said these publications will be especially helpful to the senior planning to make a large amount of money. ividual resume critiques v is the time for bring typed, rough drafts of their a resume for the resumes to the office and sign up /ear. on the waiting list. suggestion for Graduate students and the on is to go to the Career Center staff will offer tips iop. to improve the resume's content any typos, and and appearance. ite," Raley said. cr is definitely a To attend the workshops, 1^.^.1? ? D *tr# nikA/l /\ I I iuuk piuics- i\aifc) saiu aiuutius jusi uwu iu i if students do come as they are. er, they should One more workshop is left in ive color such as the semester. It will be held April 'f-white. 14 in Room 634 A of the B.A. Building. Several additional i in the critique, workshops are planned for the ;nts just need to fall. 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Visual Am DiiKt nl Two Arts KtivHy (eo in) luooliiutnl h> t I'll IicImkmuI I wnu Comparison of 1986 Law am |9<6 Tax Uw Individual ux rates IS raw bracks* from II percent to 50 percent, adjusted (indexed) for cost-of-living in creases eacn year. Personal exemptions $1.080. lode*?<l exemption if elderly or Wind) Sundard deduction Single $2,490. Indexed joint return >3,670, indexed ; Head* of household $2,460, indexed imrmiu* Dividend exclusion 1)00 $200 if joint return Unemployment compensation Taxed if Adjusted gross income it over ? certain amount ba?<d on filing status Capital gains 60 percent exclusion KuAuilUn flu > xiiurLut t U tA <1 Mh ?VJ ? "w *W? WK W fJT^VW ?WlfVW?4 couple when both work allowed Individual Retirement Un to $2,000 can be deducted Arrangements (IRAs) whether or not taxpayer* have company pension plftttt. ' > i i Moving expenses Deductible Charitable contribution* Deductible for both itemum ktul (UwllMnlMM Sate? <ax Deditctlbk Consumer Interest DeductIbte Medical expense# Deductible above 5 percent of adjusted gross Income Mtu*Haneou? expenses Fully deductible (profesiional public?flora, work clothes, etc.) ordinary ana nccemry bwauctiote business tm-aW and entertain merit expenses Earned income credit Maximum earned income: Si 1,000 Maximum credit: $550 Political contributions Limited credit for one-half of c?$? oootrtlwtlofl# Incomc averaging t.ow^ux f^tax^tyert who recent wars Uutmvtd income Of ?hii? T axed tu child's Ux mm drtn under age 14 ???w ww?f iax rw? Jj^ljjgrity mmrtwr for Not required ? .- ?i im&.# sti##,S-?I' ^ IFbYUM APR] GAME I CAREER PANEL OF USC UNDERGRADUAT ALUMNI SMALL GROl WITH SPEAKE jft| Refreshments following 1 Tax Reform Act of 1986 ' : i-A nr>T?u. I9M.WI Bqm4 '. 5 rate bracket* from 11 per- 2 rate brack**, 1$ pc?*t* .> > cent to W.5 percent and 28 percent. Indexed ., , ^ g& a Jj $1,900 (no extra exemptions %\,950 (increase* to <2,090 In .%:! for elderly or Wind) 1989, indexed themft?f~1? J? extra exceptions for etderiy <*WI*d) ;/j. $2,540 (an additional $750 If $3,000, Indexed <on additional elderly or Wind) $750 If elderly or Wind) 12,760 (an additional $000 If $5.000. Indexed (an addtUOnitl eldetly or Wind) $600 if eldetly or Wind) $2,540 (an additional $7J0 if $4,400, indexed (an additional >1 ??* ?,, 11 v \V 1 / if ' V * ' "I m7Tw Law ttixS rkyxwd ;y,^:, gl ~"ww Fatty taxed .' <-/ ;. '''&M ; ' Exduslon repeated (Taxed as Ofdinary income) ProvWon leper.led Ait tAxMfrtr* with tamed Income rtuv make deductible or * -,:?4 rWndeJSibtecontributtojSlolSrtr iW U^SKjOOO deducted for ihcwe vith<xrt company pension plan*. Taxpayers trendy covered by ? pttn am deduct up to *2,COO,?* (Mi m , ;|?l| their ftdjmted grow income U 125,000 or k? (WO.OTJO of to* for joint flien). Partial deduction# are av*ft*bte for AOt ?H> to : 110,000 mow than those timui. All IRA inmt* itaum tax m deferrrd. Deductible MHemlMa deduction - : " - V Deductible only for itwnitttrs Deduction rtpeftled jj Deduction phases out l>ed?*ctib!c above 7.5 pcrctnt of adjusted grow income Ocwralty. dedwcilbk above 2 percent of Adjusted trim iocoma I \ yy ; i vi mp?smxd*Axtm - \j|| . : , ^1 Maximum earned income: $15,432 Maximum credit: $851.20, indexed 1 : Credit repeated Provitkm repealed < : ; : ' ' V--:'w sM <> l< ,* &a |j Wm^ *& $&f: 5 Jig : ] l ;\v|fk*tk>a number <u*u*Oiy.? sodirfitecwity number) of th#^;, m ^ >dependwot <m;.:"At?-;s<;V" |^|i. ~ "" || P^S^-SSi- i "** ^; 'I I I - - I g Your I jstions I To I \ MTrn-rr I I A 1AV-JA X A Hi IL 8, 1987 I ?0-9:00 i 5RELL 250 j PANEL DISCUSSION | E HOW I GOT MY JOB? ^ WHAT I DO IN MY JOB? |j | JP DISCUSSIONS I RS AND FACULTY Door Prizes j?| \