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From: ins_alal@jhunix.UUCP (Laurah Limbrick)
Newsgroups: net.taxes
Subject: income averaging
Message-ID: <1911@jhunix.UUCP>
Date: Mon, 17-Feb-86 13:26:32 EST
Article-I.D.: jhunix.1911
Posted: Mon Feb 17 13:26:32 1986
Date-Received: Wed, 19-Feb-86 07:12:02 EST
Reply-To: ins_alal@jhunix.UUCP (Laurah Limbrick)
Organization: Johns Hopkins University
Lines: 27

A few questions:

1) I am a student who wishes to use income averaging this year, as I earned
more money than I care to pay taxes on.  As I understand it, I must have filed 
1040s for the past three years AND not have been claimed as a dependent on my 
parents' 1040s.  Is there a minimum amount of income one needs to use income 
averaging?

2) I filled out an exemption form for withholding last February, not realizing 
that I would be earning over the $3300 limit stipulated in the exemption form.
Question:  Will I only be taxed on my earnings over the $3300 limit, or will I
have to pay tax on all my earnings?  I also understand that the IRS can impose 
some kind of penalty and/or fine on me for filing the exemption form when I 
exceeded the $3300 limit.  Would they understand (:-) :-) :-) )  if I tried 
to explain the situation?  What does one normally do when this happens?  Is 
there something I should have done when I realized that I had earned over 
$3300?

Thanks for any clarifications!


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