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From: adm@cbneb.UUCP
Newsgroups: net.invest
Subject: Re: Throw your money away
Message-ID: <2431@cbneb.UUCP>
Date: Fri, 30-Nov-84 20:38:33 EST
Article-I.D.: cbneb.2431
Posted: Fri Nov 30 20:38:33 1984
Date-Received: Sun, 2-Dec-84 02:49:19 EST
Sender: adm@cbneb.UUCP
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Nf-ID: #R:inmet:-171500:cbnap:15300002:000:1130
Nf-From: cbnap!mvh    Oct 24 10:25:00 1984

.
	There is no legal limit to how many deduction you can take on the
	W4.  However, the employer is required to inform the IRS if
	you claim 15 or more dependants.  This just means you may have
	to prove to the IRS that you can have this many dependants 
	and still meet the 80% rule.

	Also, the penalty for underpayment has been reduced in the most
	recent tax law.  The penalty is now ~10% of the difference between
	your prepayments and the 80% requirement (or whatever requirement
	you must meet).  The underpayment penalty used to be ~10% of
	the difference between your prepayments and your tax liability
	for the year.

	Finally, if you estimate your tax liability about this time of year
	you can under-withhold  below the 80% requirement. But you must be
	willing to send the IRS a payment before the end of the year
	(or perhaps Jan 15) to meet the 80% requirement.

	Don't forget that the other minimum requirement is last year's
	liability.  For us the difference between the 80% rule and
	last year's liablity is ~$2500.  That's a lot of interest.

					Mark Vonder Haar (two words, one name)
					{ihnp4!cbnap!mvh}