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PRICE OF LARGER TAKE-HOME PAY WILL BE SMALLER TAX REFUNDS

Utahns receiving paychecks this week are finding their take-home pay slightly larger than normal thanks to President Bush.

The reason is the president ordered a revision of federal income tax withholding tables that is giving healthier take-home pay beginning March 1.But, before you get too excited, remember that most good things have a down side and this is no different: refunds in 1993 will be smaller.

To offset the problem, Utah wage earners are encouraged to fill out a new W-4 Form and ask that taxes be withheld at the same level as before.

According to an article from the Federal Tax Advisor being distributed to some Utah employees, the initial payroll withholding cuts can be described as modest at best. "Annual adjustment amounts will be up to $172 per job for taxpayers who withhold at the single rate and up to $345 per job for taxpayers who withhold at the married rate," the article said.

The article outlines the hypothetical case of Bobby and Betty, a married couple with two children. They file a joint return without itemizing. Bobby works and is paid $700 on a weekly basis. Using the percentage method of withholding, $81.08 is withheld weekly from his check based on the two withholding allowances he claims.

Starting this week, Bobby saw his withholding drop to $74.48 and during the remainder of the weeks in 1992 he will see about $284 more in his paycheck, an increase of $6.60 per week. The couple will receive a refund for 1992 of $753, but under the old withholding table they would have received $1,036.

The article warns that taxpayers who have received small refunds in the past may now owe additional tax when they file in 1993 because of the new tax tables.