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Show ..... r . f j - - T ( 'L.'JMvMrv, , J . i II.!- V.-- ! ft,. V f ::.. tji.fj i' ?. Tlw Sampler, February 13, 1986 A checklist for dependency exemptions Many people provide support for others. However, to. claim a person as a dependent on the federal income tax return, certain specific tests must be met. Answering the following statements should help you determine whether or not a person is your dependent: No Yes 1. You furnished more than half the persons' total support during the year; 2. The person's income is less than $1,040 unless he or she is your child or stepe student for at least 5 months of child who is under 19, or who is a the year. 3. The person was a ILS. citizen, resident or national, or a resident of Canada or Mexico for some part of the year. 4. The person is your child, stepchild, parent, stepparent, grandparent, grand-chilbrother, sister, stepbrother, Btepsister, or daughter father-in-lasister-in-laaunt, uncle, niece, nephew, or related by Dlood. ll the person is not one .of the relatives listed, he or she was a member of your household and lived with you for the entire year. 5. If married, the person is not filing a joint return with his or her spouse OR neither the person nor the person's spouse is required to file but they are filing a joint return only to claim a refund of tax withheld. If you answered yes for all statements you may claim the person as your dependent. Note: There are special rules for children of divorced or separated parents and for persons supported by more than one taxpayer. Additional information can be found in the free IRS Publication 501, Exemptions and Publication 504, Tax Information for Divorced or Separated Individuals. To obtain a copy of these handy, references, use the order form found in your tax package or call , Parents can receive tan credit for money spent on child care full-tim- d, son-in-la- Parents who pay someone to care for a child or disabled dependent while they work or look for work may qualify for a special tax credit, the Internal Revenue Service said. This Child and Disabled Dependent Care Credit may be taken not only for payments to e centers babysitters and but also to certain relatives paid for this service. This credit is available to. married couples who both work e part-tim- e or and file jointly.' e If one spouse works and the other works part-time is a student or is disabled, they are also eligible for the credit, according to the IRS. The credit may also apply to a divorced or separated parent who has custody of a child who is under 15 or physically or mentally incapable of even though the parent may not be entitled to a dependency exemption for the child, the IRS day-car- full-tim- full-tim- e, full-tim- self-car- e, said. The parent claiming the cre dit must, however, have custody for a longer period during the year than the other parent. A married person living apart from his or her spouse is eligible for the credit when the spouse is absent for the last six months of the taxable year, and a separate return is filed. Percentage varies The credit is from 20 to 30 percent of eligible expenses, depending on the taxpayer's adjusted gross income The maximum credit that may be taken is limited to $720 for one qualifying person and to $1,440 for two or more qualify- ing persons. To qualify for the Child and Disabled Dependent Care Credit, the IRS said, a taxpayer (1) must have been gainfully employed or in active search of gainful employment when the expense for the child's or disabled dependent's care was incurred, and (2) must have paid over half the cost of maintaining his or her household, which included one or more qualifying individuals.' A qualifying individual is a dependent child under 15 years of age or a spouse or dependent who is mentally or physically incapable of How to claim To claim the credit, taxpayers can file Form 1040A, using the self-car- e. easy-to-rea- pllliy Forms W-- 2, "Wage and Tax Statements"? ' Have you attached all the supporting schedules to your Form 1040? -- Is your arithmetic correct? ' Are all of your entries on the proper lines? If you rounded your numbers, did you round consistent-- ly? the Tax Tadid follow the line ble, you across the correct column for : -- When you used Taxpayers who file Form 1040 may also claim the credit, even if they do not itemize deduc- thelRS. tions. These taxpayers compute the credit on Form 2441, "Credit for Child and Dependent Care Expenses;,'' and attach this form to most taxable is considered Military pay: amounts u received received by by retired memPayments bers of the military generally are taxable except for allo- the Form. 1040. Additional information is available in IRS Publication wances. 503, "Child and Dependent Care Credit, and Employment Taxes for Household Employers," which may be ordered by filling out the order blank in the tax package or by calling the IRS FormsTax Information number listed in the telephone date your return? Remember, if it's a joint return, your spouse must sign it too. -- Did you use the peel-olabel and is the information on' the label correct? Did you remember to put a stamp on the ff ed If the return has several attachments, additional envelope? postage may be required. 7 OPENED PRESIDENTS PAY v mm r earners Many such as students, retirees, and part-tim- e employees are entitled to receive a full refund of the federal income taxes withheld during the year, but they must' file a return to get it. Check your W-Wage and Tax Statement, to see if any federal income tax was withheld. If any was withheld and you have no tax liability, filing a return is the only way to recover the money that was withheld. M P205775R15 P21575RiS P22570R15 P22575R15 P23575R15 '. General Weather Steel Radial Long mileage, all-seas- traction steel belt system Resilient radial polyester cord body Non-corrosiv- e, Full manufacturers warranty 60,000 mile rating Road hazzard warranty available Branded for fuel savings Trimwhite sidewall styling ; quarters or subsistence provided in kind. In addition, housing and allowances for the extra cost of quarters and subsistence while on permanent duty cost-of-livi- liability again in 1986 and your income will be below the amount required to file a return, you can avoid having to file a tax return to recover your tax withheld by giving your emEmployer a new form W-- wances are paid by our government or by the government of the country in which a person is stationed. Other expenses not included in taxable income include moving and storage expenses, family separation allowances provided because of certain overseas assignments and forfeited pay. 4, . from withholding only if you had no income tax liability in 1985 and you expect to have no income tax liability in 1986. GrabberAT Grabber MT ' Price Price Size 122.95 128.95 30x9.50R15 O 35.95 31x1 0.50R1 5 128.95 159.95 33x12.50R16.5 149.95 143.95 151.95 33x12.50R15 All-Terra- Light Truck Radial in General Grabber AT Radial polyester cord construction. Dimensionally stabilized polyester cord body Deepest of the 3 Grabber treads Husky shoulder blocks with optional stud feature d Designed to offer outstanding performance Tough multiple steel belts tread. Wide, blocky Aggressive, traction action 4-r- ib self-cleanin- off-roa- g,' all-terra- OTHER SIZES COMPARABLY LOW PRICED - Hr'"r)J" jr"ni "i "it " i. ng outside the United States are not included in income. This is true whether the allo- ployee's Withholding Allowance Certificate, claiming exemption from withholding. You may claim exemption Mud Traction Light Truck Radial General Grabber MT AmeriWay ST All Allowances not considered taxable income include subsistence, uniform and quarters allowances, or the value of Track Tire Special I NEW VALVES 47.95 51.95 53.95 56.95 57.95 58.95 61.95 62.95 63.95 68.95 me 2, BALANCING P18580R13 P18575R14 P19575R14 P20575R14 P21575R14 When reporting military retirement pay, taxpayers should not include, in income the COMPUTER SPIN PRICE Serviceman's Family Protection Plan, or the Survivor Benefit Plan. vice. pay; PRICE FOR SIZE military retirement pay based on age or length of ser- armed, services academy EACH TIRE INCLUDES: MOUNTING Kill m . low-inco- -- Did you sign and pre-address- amount of reduction in retirement or retainer pay to provide a survivor annuity for a spouse or children under the Retired personnel serving as instructors in junior ROTC programs; D lump-supayments on separation or release from active duty; and Many low income earners entitled to full tax refund your filing status? .' . Military payments considered taxable income include: active duty pay; Reserve training pay; reenlistment bonuses; PRESIDENTS SALE A' A . w, w, . worksheet in the Form 1040A tax package to compute the amount of the credit. . Mistakes slow return processing To those expecting a tax refund this year, the Internal Revenue Service says a quick check for accuracy can '"help avoid .mistakes which might slow tax return processing. d Carefully prepared, returns can be processed faster, the IRS advises. . Once the return is completed, the IRS suggests that taxpayers consult the following check list: --Have you attached all your w, in g |