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24 1984 Tax Preparation Guide Working couples should check withholding status Working couples--especially those with few or no dependents--more of­ ten than not will owe tax when they file their annual tax returns, unless they have paid additional taxes dur­ ing the year, the Internal Revenue Service says. The reason for owing additional tax is the withholding rates. They are based solely on each individual's it makes doing your tax return easier and faster! A public service pessage from the Internal Revenue Service wages, and do not take a spouse's wages into account. There are several alternatives for a working couple to avoid a large tax bill at filing time, according to the IRS. Gererally, filing separate returns is not the answer, because those rates are higher still, the IRS points out. Yet it is good tax planning to consider the possibility. Filing sepa­ rately might be a tax advantage, but if it is not, there are two other choices. One way to confront underwith- holding is to file a new Form W-4, Employee's Withholding Allowance Certificate, with the employer claim­ ing fewer or no allowances or re­ questing additional withholding. Also, married taxpayers may choose to have taxes withheld as if they were single. Anolther choice is to pay addi­ tional tax by means of estimated taxes This means that the tax is paid in quarterly installments directly to the IRS using payment vouchers that come with Form 1040-ES, Estimated Tax for Individuals. Both Forms W-4 and 1040-ES, are available from IRS. Most employers have supplies of Form W-4. While most employers are willing to honor the wishes of employees by withholding additional income tax, they are under no obligation to do so. If an employer refuses to withhold additional tax, the best choice then may be to pay estimated tax, the IRS explains. Additional information may be found in the IRS Publication 505, Tax Withholding and Estimated Tax, available free by using the order blank in the tax package or by call­ ing the IRS Forms-Tax Information number listed in the telephone direc­ tory. Allow at least ten days for de­ livery. Savings bond interest is taxable rrrrrrrrrrt tt v r 'Trmrrtrrrrrrr»v i v i v i vm r ttttttth v rrrrm ADAMS & COMPANY CERTIFIED PUBLIC ACCOUNTANTS Founded in 1947 by Elmer P. Adams Interest on U.S. Savings Bonds is taxable income and must be re­ ported on federal income tax re­ turns, the Internal Revenue Service says. r Taxpayers must report the interest from Series E and EE bonds in one of two ways: 1) annually, as it ac­ crues or, 2) when the bond is cashed or reaches final maturity. In the case of Series H and HH Bonds, however interest payments are made twice a year and must be repoorted in the year received. Those taxpayers who buy U.S. Savings Bonds as co-worker with their children are liable for the tax on the interest earned on the bonds. Interest on U.S. Savings Bonds bought in the name of the child, is in­ come to the child, even if the tax­ payer pays for them and is named as beneficiary. INVEST IN ADVENTURE., Accounting/Auditing/ Management Consulting/ Income and Estate Tax Planning and Return Preparation/ Financial Planning •IDAHO RIVER RAFTING •STEAMBOATING •HUNTING & FISHING EXPEDITIONS •SKIING THE ROCKIES OR THE ALPS OR CRUISE ON YOUR RETURN... •ALASKA •MEXICO •CARRIBEAN •MEDITERRANEAN OR USE IT TO FLY! •HAWAII EOR *499-MOTEL & AIR •LAS VEGAS EOR UNDER *250 •EUROPEAN DREAM VACATIONS •THE UNITED STATES FROM COAST TO COAST YOUR OWN FANTASY VACATION? WFLL HELP ARRANGE IT. Fox Lake, IL (312) 587-2301 McHenry, IL (815) 344-3349 ADVENTURES UNLIMITED TRAVEL 4720 W. ELM (NEXT TO BOB'S COLORS) McHENRY, ILL • 344-4100