Newspapers / The Fieldcrest Mill Whistle … / July 19, 1971, edition 1 / Page 7
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Use This Table To Check Your Tax Withholding Working 1971 Guide for Determining the Additionai W'rthhoiding Needed by Working Couples CoupEes: Do you need •i^ore tax Withheld? Usually, when both husband and v^ife work, the tax withheld from their '^ages is not enough to pay their full income tax when they file their an nual income tax return. The table at right helps you to figure how much extra tax you might need to have withheld during 1971 in order to avoid a big tax bill at the end of toe year. (If you have already ar ranged for extra withholding or have niade payments on a Declaration of Estimated Tax, you may not need to rio anything.) To' use this table, you must first subtract $650 for each of your ex- ^nnptions from your annual wage. For instance, a family consisting of hus band, wife, and two children would have four exemptions (4 x $650), or 52,600. This amount can be sub- toacted from either the wage of the husband or the wage of the wife, qr If one spouse’s annual wage, reduced by $650 for each exemption, is— And the other spouse's annual wage, reduced by S650 for each personal exemption, is— $1,000 S2.000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 The amount of additional withholding needed is approximately- $ 1,000 $ 160 $ 160 $ 160 $ 160 $ 160 $ 160 $ 160 $ 190 $ 190 $ 190 $ 190 $ 190 2,000 160 200 200 200 200 200 200 260 250 250 250 250 3,000 160 200 200 200 200 200 200 300 300 300 300 300 4,000 160 200 200 200 200 250 250 300 300 300 350 350 5,000 160 200 200 200 250 250 300 300 350 350 350 400 6,000 160 200 200 250 250 300 300 350 400 400 400 450 7,000 160 200 200 250 300 300 350 400 450 450 450 500 8,000 190 250 300 300 300 350 400 450 500 500 500 550 9,000 190 250 300 300 350 400 450 500 500 560 550 600 10,000 190 250 300 300 350 400 450 500 550 550 600 700 11,000 190 250 300 350 350 400 450 500 550 600 700 750 1 2,000 190 250 300 350 400 450 600 550 600 700 750 800 1 3,000 190 250 300 350 400 450 500 600 700 750 800 950 14,000 210 300 350 400 450 500 550 650 750 800 '950 1,050 1 5,poo 210 300 350 400 450 500 600 700 800 900 1,000 1,100 16,000 210 300 350 400 500 550 650 750 900 1,000 1,100 1,200 17,000 210 300 350 450 500 600 700 850 1,000 1.050 1.150 1,300 18,000 210 300 350 450 550 650 800 950 1,050 1,150 1.250 1,400 19,000 210 300 450 500 600 750 900 1,000 1,100 1,250 1,350 1,500 20,000 250 400 450 550 700 850 950 1,100 1,200 1.350 1.450 1,600 21,000 250 400 450 650 750 850 1,000 1,150 1,300 1,400 1.500 1,650 22,000 250 400 550 650 800 900 1,050 1,200 1,350 1,450 1,600 1,750 23,000 250 450 600 700 800 950 1.100 1,250 1,400 1.550 1.700 1,850 Caution: For 1971, the standard deduction is 13 percent of incoine, limited to a maximum deduction of $1,500. This fable assumes that when you file your tax return the deduc tions claimed {standard or itemized) will equal 13 percent of your annual wages. Therefore, if the combined annual wages divided between them. Suppose the husband’s annual wage is $15,000, and he claims two of the exemptions —the wage after exemptions is $13,700. Suppose the wife's annual wage is $6,500 and she claims two exemp tions—the wage after exemptions is $5,200. Locate in the first column the an nual wage closest to that of husband or wife and read across to the column of you and your spouse exceed $11,500 and actual itemized deductions are less than 13 percent of wages, more with holding may be necessary. Also, more withholding may be necessary if you have other kinds of income. headed by the annual wage closest to that of the other. The figure you find there is the approximate amount of extra withholding needed during 1971 to avoid owing a balance at the end of the year. In the example the husband would look down the first column to $14,000, and read across to the column headed by $5,000 (for the wife). He finds that the amount of additional withholding is $450. ^hat to do: Either the husband or wife, or both, Can increase withholding by asking toe employer for a new Withholding Exemption Certificate, Form W-4. 7his form should be filled out to re quest the employer to withhold a Specific dollar amount of extra tax, to claim fewer withholding exemp tions. (At the bottom of this page, Vou will find a table indicating how couch extra tax would be withheld ®ach payday for each withholding ex- ccnption you drop). Since half of the year has already gone by, it is necessary to divide the ®xtra withholding needed by the num ber of paydays left in the year. To illustrate, in the example above where approximately $450 additional tax is needed, if the employees are paid weekly and there are 25 paydays left in the year, $18 additional withhold ing per payday is needed. Either the husband or the wife should file and ask that $18 more per payday be withheld, or they may divide the $18 between them, as they wish. In lieu of arranging for additional dollar amounts to be withheld, it is some times possible to accomplish the same thing by reducing the number ofwithholding exemptions claimed on the exemption certificate. Form W-4. For example, an employee in the $14,000 to $19,000 salary range would have $2.60 more per week withheld for each exemption dropped. and an employee with a wage of $5,000 would have $2.10 more per week withheld for each exemption dropped. If annual wage, reduced by For the following payroll periods, the $650 for each amount of additionai withholding for each exemption is— exemption dropped is approximately— Weekly Biweekly Semimonthly Monthly Under $1,050 $0 $0 $0 $0 $1,050-$2,200 1.80 ,, 3.50 3.80 7.60 $2,200-$8.500 2.10 4.10 4.50 8.90 $8,500-$14.000 2.40 4.80 5.10 10.30 $14,000-$20,000 2.60 5.30 5.70 11.40 Over $20,000 3.10 6.30 6.80 13.50 ©®lp©01M)©(nJa @[f Internal Revenue Service ivt ONDAY, JULY 19, 1971
The Fieldcrest Mill Whistle (Spray, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
July 19, 1971, edition 1
7
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