TX-LIMIT
TAX DEDUCTION & EXEMPTION - LIMIT
Any AMOUNT in this box is an UPPER LIMIT for this Deduction, UNLESS option #5
is selected. In that case it becomes a LOWER LIMIT for this Deduction.
Example: (ALL TAX COMPUTATIONS ARE DONE USING ANNUAL TABLES)
When to Compute How to Compute Rate Limit
Before Table 4- Rate times Gross .15 2000
Before Table 5- Lower Limit 1500
For this State Tax Table a Deduction from Gross Pay is allowed of 15%
UP TO A LIMIT OF $2,000. There is also a MINIMUM of $1,500 for this Deduction.
So the Deduction is 15% of Gross Pay, but NOT MORE than $2,000 nor LESS
THAN $1,500 per year.