Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site cbneb.UUCP Path: utzoo!watmath!clyde!cbosgd!cbsck!cbscc!cbneb!adm 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 Organization: AT&T Bell Laboratories, Columbus, OHIO Lines: 27 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}