sbw@sri-unix (12/08/82)
In a previous article, someone incorrectly stated that you can't use income averaging if you were a full time student during any part of the last 4 years. That is NOT true. The catch is that you must have been self- supporting during the previous 4 years (i.e., not declared as a dependent on someone else's retu Also, if you are married and only one of you meets this support test, you can still average IF the person who was not self-supporting earned less than 25% of your joint income in the current year. Sandy Wiedemeier
3133rvh (12/14/82)
The REAL catch on income averaging after you get out of school is that the IRS will not consider you "self-supporting" if you were on a non- taxable fellowship or assistantship. Under such cicumstances, the source of the fellowship or assistantship is considered to be supporting you. One way around this is to PAY the taxes on the money you get while in school. You may then be supporting yourself in the eyes of the IRS (then again, you may not be - they're rather tricky about things like this).