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Some taxpayers required to pay estimated taxes 1984 Tax Preparation Guide Individuals who have income that is not subject to withholding^ or from which not enough tax is being with­ held, may have to pay estimated taxes, according to the Internal Re­ venue Service. In general, you are not required to pay estimated tax for 1984 if you ex­ pect that your 1984 Form 1040, 1040A or 1040EZ will show (1) a tax refund, or (2) a tax balance due of less than $400. Your estimated tax is the total of your expected tax for 1984 minus your expected withholding and credits. If you are a citizen or resident of the United States, Puerto Rjico, the Virgin Islands, Guam, or American Samoa, you must pay estimated taxes if your total estimated tax is $400 or more, and you: --can reasonably expect your gross income for 1984 to include more than $500 from sources other than wages subject to withholdina; or, --can reasonably expect your gross income to exceed- a) $20,000 if you are a single indi­ vidual, a head of household, or a qualifying widow or widower entitled to special tax rates: b) $20,000 if you are a married in­ dividual entitled to maake joint es­ timated tax payments' with your spouse, but only if your spouse has not received wages for 1984; c) $10,000 if your are a married in­ dividual entitled to make joint es­ timated tax payments with your spouse, but only if both you and your spouse have received wages for 1984; or d) $5,000 if you are a married indi­ vidual not entitled to make joint es­ timated tax payments with your spouse. Gererally, you must make your first estimated tax payment for the calendar year 1984 by April 16, 1984. You may pay all your estimated tax at that time or you may pay it in four equal installments. Additional information on tax with­ holding and estimated tax can be found in the free IRS Publication 505, Tax Withholding and Estimated Tax, available by using the mail­ order form in your tax package. Income averaging can reduce the amount of taxes you owe Taxpayers whose income in­ creased substantially in 1983 may be eligible for a tax break by using the income averaging method of tax computation when filing their fe­ deral income tax returns, the Inter­ nal Revenue Service says. In income averaging, part of an unusually large amount of taxble in­ come can be taxed at lower fates. Generally, the taxpayer uses the four years prior to 1983 to compute the tax in averaging income. The first step is findinng if the averagea- ble income was more than 30 percent of the total taxable income for the four years preceding 1983. The easi­ est way to determine this is to fill out Schedule G, Income Averaging. For detailed information on how to compute income averaging tax­ payers should ask the IRS for free Publication 506, Income Averging, and Schedule G, available by uusing the handy order form in the tax package. Can you qualify as a dependent ? Many people depend on each other. However, to claim a person as a depen­ dent on the federal income tax return, certain specific requirements must be met. The following quiz should help you determine whether or not a person is your dependent: True False 1. You furnished more than half the person's financial support during the year. 2. His or her income is less than $1000 unless the person is your child or stepchild and under nineteen or a full- time student for at least 5 months of the year. 3. The person was a U.S. citizen, resident or national, or a resident of Canada or Mexico for some part of the year you wish to claim him or her. 4. The person is your child, stepchild, parent, stepparent, grandparent, grandchild, brother, sister, stepbrother stepsister, in-law, or, if related by blood, your aunt, un­ cle, niece, or nephew. If the person is not one of the listed relatives, he or she was a member of your house­ hold and lived with you for the entire year. 5. If married, the person is not filing a joint return with his or her spouse OR neither the person or the person's spouse is required to file but they are filing a joint re­ turn only to claim a refund of tax withheld. Correct Answers: TRUE for all five. If you checked TRUE for all statements you may claim the person as your dependent. Note: There are special rules for children of divorced or separated parents and for persons supported by more than one taxpayer. Additional information can be found in the free IRS Publication 501, 'Exemptions" To obtain a copy of this handy reference use the order form found in your tax package. ' !V IDUAL RETIREMENT ACCOUNTS Save on your '83 taxes now, Iby opening your I.R. A. today. We know retirement plans are individual and require special thought and planning by you and by us -- together we will arrive at the best plan for YOU. WHY HOME FEDERAL SAVINGS? First -- you don't have to come up with the whole I.R.A. investment amount at one-time if you don't want to. You can make a mini­ mum $100 deposit followed by additional de­ posits at anytime in any amounts to your I.R.A. Second -- Insured safety is vital for anything as important as your retirement -- and at Home Federal, accounts are insured to $100,000 by an agency of the U.S. Govern, ment. Third -- highest interest is offered by the many different kinds of savings plans availa­ ble at Home Federal Savings. Finally -- Home Federal offers added conve­ nience to its many savers by offering 10 area office locations plus personal checking and many automatic teller machines in Jewel Food stores and OMNI 24-hour banking loca­ tions. A R S O P S E R V I C E Home Fedeial Savings of Elgin F o r c o m p l e t e i n f o r m a t i o n c a l l 1 ( 3 1 2 ) 7 4 2 3 8 0 0 F o r c o m p l e t e i n f o r m a t i o n c a l l 1 ( 8 1 5 ) 4 5 9 - 5 8 8 0 F o r c o m p l e t e i n f o r m a t i o n c a l l 1 ( 8 1 5 ) 3 3 8 - 9 2 0 0