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Students who have obtained summer employment should be aware of tax law changes affecting them when they complete the Form W-4 for tax withholding, the Internal Revenue Service cautioned recently. 0
“Due to changes brought about by the 1986 Tax Reform Act, students need to review their own tax liability before completing a Form W-4 or W-4A,” said Joyce Weitz, Acting District Director in Richmond.
“According to the new tax law, students may not claim an exemption for themselves on their 1988 tax return if they can be claimed by anyone else, including their parents,” Ms. Weitz said.
“Many students will have a tax liability when they file their 1988 tax return. Therefore, they can no longer claim to be exempt from withholding of Federal income tax from their pay. Students may not claim exempt status on a Form W-A or W
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