Page:United States Statutes at Large Volume 80 Part 1.djvu/96

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26'us*cVi388 78 Stat. 23. '

26 USC 1-1563.

PUBLIC LAW 89-368-MAR. 15, 1966

[80 STAT.

For purposes of this subsection, fractional numbers shall not be taken into account. " (2) DEFINITIONS.—For purposes of this subsection— " (A) ESTIMATED ITEMIZED DEDUCTIONS.—The term 'estimated itemized deductions' means the aggregate amount which he reasonably expects will be allowable as deductions under chapter 1 (other than the deductions referred to in sections 141 and 151 and other than the deductions required to be taken into account in determining adjusted gross income under section 62) for the estimation year. I n no case shall such aggregate amount be greater than (i) the amount of such deductions shown on his return of tax under subtitle A for the taxable year preceding the estimation year, or (ii) in the case of an employee who did not show such deductions on his return for such preceding taxable year, an amount equal to the lesser of $1,000 or 10 percent of the wages shown on his return for such preceding taxable year. " (B) ESTIMATED WAGES.—The term 'estimated wages' means the aggregate amount which he reasonably expects will constitute wages for the estimation year. I n no case shall such aggregate amount be less than the amount of wages shown on his return for the taxable year preceding the estimation year. " (C) ESTIMATION YEAR.—In the case of an employee who files his return on the basis of a calendar year, the term 'estimation year' means— "(i) with respect to payments of wages after April 30 and on or before December 31 of any calendar year, such calendar year, and "(ii) with respect to payments of wages on or after January 1 and before May 1 of any calendar year, the preceding calendar year (except that with respect to an exemption certificate furnished by an employee after he has filed his return for the preceding calendar year, such term means the current calendar year). In the case of an employee who files his return on a basis other than the calendar year, his estimation year, and the amounts deducted and withheld to be governed by such estimation year, shall be determined under regulations prescribed by the Secretary or his delegate. "(3)

S P E C I A L RULES.— " (A) MARRIED INDIVIDUALS.—The

number of withholding allowances to which a husband and wife are entitled under this subsection shall be determined on the basis of their combined wages and deductions. This subparagraph shall not apply to a husband and wife who filed separate returns for the taxable year preceding the estimation year and who reasonably expect to file separate returns for the estimation year. " (B) O N L Y ONE CERTIFICATE TO BE IN EFFECT.—In the case of any employee, withholding allowances under this subsection may not be claimed with more than one employer at any one time. " (C) TERMINATION or EFFECTIVENESS.—In the case of an employee who files his return on the basis of a calendar year, that portion of a withholding exemption certificate which relates to allowances under this subsection shall not be effective with respect to payments of wages after the first April 30 following the close of the estimation year on which it is based.

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