To: All Undergrad Students & All Grad Students <everybody@illinois.edu> 
    From: "Office of Business and Financial Services" <obfs@uillinois.edu>

Reply-To: obfs@uillinois.edu
 Subject: MASSMAIL - Notice about Changes in Income Tax Withholding

This e-mail message applies to all employees of the University of  
Illinois.

The IRS has issued new tax tables to reduce federal tax withholding 
required by the new economic stimulus law, the American Recovery and 
Reinvestment Act of 2009.  For 2009 and 2010, the Making Work Pay 
provision of the stimulus bill provides a reduction in withholding of 
$400 for those claiming Single on the Form W-4, and $600 for those 
claiming Married on Form W-4.

The new tables will be effective with payrolls paid in April. Eligible 
University employees will get the benefit of the reduced withholding 
without any action on their part. The new tax tables will adjust the 
withholding automatically.

However, there may be situations where individuals will be under withheld 
if no action is taken:

*If an individual works for more than one employer the new tax tables 
will provide the reduced withholding for both employers.  This would 
reduce the withholding by more than what an individual would be entitled 
to.

*Married couples with both spouses working and claiming married on the 
Form W-4 will also see the reduction in withholding for both spouses.  
This would reduce the withholding by more than what the married couple 
would be entitled to. 

*Individuals claimed as a dependent on another individual's tax return 
are not eligible for the reduced withholding.  The reduction is automatic 
and could result in under-withholding for the year.

*Nonresident aliens are not entitled to the reduced withholding.  The 
calculations are adjusted so that the reduction is not applied to most 
nonresident alien withholding.  However, the calculation adjustment does 
not apply to students and business apprentices from India.  Individuals 
in this category may be under-withheld in their taxes for the year.  

In the situations described above, if you want to make sure the 
appropriate withholding is applied, you need to file a new Form W-4. You 
may claim fewer withholding allowances on line 5 or request additional 
amounts to be withheld on line 6. 

If you are unsure what you should submit on the Form W-4, you can use the 
IRS Withholding Calculator to determine what you would need to claim so 
that you do not owe taxes at the end of the year.  The calculator is 
found at: <http://www.irs.gov/individuals/article/0,,id=96196,00.html>.

For additional help, see IRS Publication 919, How Do I Adjust My Tax 
Withholding?, at:
<http://www.irs.gov/pub/irs-pdf/p919.pdf>.

NOTE: Because some e-mail programs split long addresses (URLs), you may 
not be able to reach the desired pages by clicking on the links provided 
above. Try copying all the text between the angle brackets into your 
browser's address bar. There are no spaces in the URL.

If you have questions about the automatic withholding adjustments please 
contact University Payroll at 866-476-3586, 217-265-6363 or 
payinq@uillinois.edu. 

Laurie Pitner
Executive Director, University Payroll


This mailing approved by:
The Office of the President

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