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This newspaper page contains 4 articles. Subscribers can read the full text of each article.
Newspaper
Garden City Telegram
Location
Garden City, Kansas, United States of America
Date
Jan 30, 2001
Page
6
Guidance from H&R Block explains that parents can claim grown children living at home as dependents if they provide more than half the child's support and the child's income is below 2750 dollars, with exceptions for younger students and certain relationships.
Guidelines cover late filing and payment penalties, interest, and maximums. Military combat zone provisions grant credits, exemptions, and extended deadlines, including extensions to file and pay, with specific dates and eligibility for personnel and civilians supporting the U.S. Armed Forces.
The article explains the 20 percent IRS withholding on lump-sum pension payments and outlines a direct rollover to an IRA as a way to avoid withholding. It notes the tactic is legislative revenue驱 and that directing funds straight to the rollover IRA prevents withholding, with tax due only when funds are withdrawn from the IRA.
A 401(k) withdrawal before leaving a company is generally blocked unless facing an immediate, heavy financial need such as medical bills, home down payment, or eviction. Restrictions include 20 percent withholding, 10 percent early distribution penalty before age 59 1/2, taxation at top tax rate, and limits equal to personal contributions. Rolling into an IRA can avoid the penalty.
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