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Show Saturday, March 29, 1997 The Park Record A-21 Filers offered April 15 tax tips provided by the Internal Revenue Service Age Has Its Tax Benefits There are benefits to getting older, at least when it comes to taxes. Some tax benefits become available starting at age 55. A once-in-a-lifetime tax break is available to people age 55 or older. Those who are selling their personal residence may qualify for the exclusion of up to $125,000 of gain on the home sale. Certain use and ownership restrictions apply, and there are special rules for persons per-sons with disabilities and for widows wid-ows or widowers. People age 60 or older can get help with their tax returns from Tax Counseling for the Elderly (TCE). Through TCE, volunteers from many organizations provide free tax information and guidance. Local IRS offices have information on TCE locations. Seniors age 65 or older may not have to file a tax return if their income is less than a certain amount. For 1996, that amount for single seniors is $7,550. The limit for a married couple filing a joint return is $12,600 if only one spouse is a senior, and $13,400 if both are seniors. Those who don't itemize deductions deduc-tions get a higher standard deduction deduc-tion than people under 65. And those who are blind get an extra added amount. Seniors or people with disabilities disabili-ties may qualify for the credit for the elderly or the disabled. This credit is based on age, income and filing status, and can reduce the amount of taxes owed. Those under 65 could be eligible if they retire with total and permanent disability and have income from their employer because of that disability. dis-ability. The IRS considers persons to be age 65 on the day before their 65th birthday. So to the IRS, those who turn 65 on January 1, 1997, are age 65 on December 31, 1996. For more information, get Publication 554, Tax Information for Older Americans, and Publication 910, Guide to Free Tax Services. Call 1-800-829-3676. Claim That Dependent The benefits in claiming a child as a dependent on a tax return are apparent lower taxes. However, there are rules that must be followed fol-lowed to claim another person, even a son or daughter, as a dependent depen-dent on a tax return. , ;.C In order to, claim a dependent, that person must meet five tests: the member of household or relationship rela-tionship test, the citizenship test. 1 ".frgrnjE,! VDINER ;1 drf 33J) ilT ACME DINER pfifl Main Street 655-8636 Open Sunday-Thursday 6-12 am Fririav Saturday o-1 am a p 4 the joint return test, the gross income test and the support test. Household or Relationship Test-Dependents Test-Dependents must live with the taxpayer for the entire year or be closely related to the taxpayer, such as sons and daughters, parents, par-ents, grandparents and some other relatives. -Citizenship Tests-Generally, Tests-Generally, dependents must be U.S. residents or citizens, or residents resi-dents of Canada or Mexico. -Joint Return Test-Married Test-Married dependents may not file joint returns. The only excep- IRS Individual Taxpayer Identification Number," may be sent to the IRS to get individual taxpayer identification numbers (ITIN). Tax returns without correct SSNs or ITINs will not be processed until the numbers are verified, which means any refunds will be delayed. For more information on dependency tests and exceptions, see English-language Publication 501, Exemptions, Standard Deduction, and Filing Information, or Spanish-language tion is for those who file a return only to get back a tax refund (neither (nei-ther husband nor wife has enough income to require filing of a tax return). -Gross Income Test-Dependents Test-Dependents must have less than $2,550 income during the year, unless they are the taxpayer's child and are either under age 19 at the end of the year or under age 24 and a full-time student for some part of each of five months of the year. -Support Test-Finally, Test-Finally, taxpayers usually must pay more than half the cost of supporting sup-porting their dependents for the year. There are different rules for children of divorced or separated parents. In addition to the five tests, taxpayers tax-payers must have a Social Security number (SSN) for each dependent who was born before December 1996. Form SS-5, "Application for a Social Security Card," available from the Social Security Administration, is used to apply for a number. For alien dependents depen-dents who do not qualify for an SSN, Form W-7, "Application for 579SP, Como Preparar la Declaration de Impuesto Federal. Resident and nonresident aliens should also see English-language Publication 519, U.S. Tax Guide for Aliens, for information on dependents. Call 1-800-829-3676 to order. Final Income Tax Return Due As strange as it may seem, tax obligations do not end at death. If people have enough income before dying to require tax returns, then their families or executors must file a final income tax return to report that income and pay any taxes or claim any refund due. And depending on when a person per-son dies, more than one tax return may need to be filed. For a calendar calen-dar year taxpayer who dies between January 1 and April 15 without filing the previous year's return, two income tax returns are due. The first is due by April 15 of the year of death. The second and final return is due by April 15 of the following year to report any income and deduct any expenses the decedent (person who died) had between January 1 and the date of death. All these things can be handled by a personal representative of the decedent's estate: an executor, an administrator, or anyone who is in charge of the decedent's property. If taxes are owed, the representative represen-tative must collect them from the estate and send a check with the tax return to the Internal Revenue Service. If a refund is due, the representative rep-resentative must attach to the return a copy of the court certificate certifi-cate showing his or her appointment appoint-ment as representative. This certificate cer-tificate authorizes the IRS to make the refund payment to the decedent's dece-dent's estate. A power of attorney or copy of the will is not acceptable. accept-able. For those who are not court-appointed court-appointed or certified personal representatives, a Form 1310, "Statement of Person Claiming Refund Due a Deceased Taxpayer," may be required. Usually a surviving spouse can file a joint return for the decedent if he or she did not remarry in the year of death. Making a payment or claiming a refund is handled the same way as if the decedent were still living. The surviving spouse does not need to file Form 1310. The surviving spouse or representative repre-sentative should immediately give notice of the death to all parties, including financial institutions, who paid income to the decedent. This will ensure the proper reporting report-ing of income earned by the estate or heirs. A person's death can also affect the tax returns of the heirs and the estate. It may be wise to have the representative coordinate the filing fil-ing of all tax returns to make sure they are done correctly. For more information on the duties and responsibilities of the personal representative, get Publication 559, Survivors, Executors, and Administrators, by calling 1-800-829-3676. EggspeciaUy tor you. Pick up some chocolate treats to fill a special Easter basket. Easter! Sunday, March 30 Park City Resort Center 314 Main St, Park City Snowbird Center p (DODO3 mmmmammmMmmmmmmmmmmmsimimmmmtmmmmmmmmKmmmmammK .jnm. i mi winiMwwpiwiwiJiN mini 1 1 n imm-, .iiwiPHwwwwwpiiiinwnjiiMJiiiiiiiiim m . i imymHmmMmmmvn iiw.i iwni im' -iii'ith nnn iwm i , Opening a home equity line from First Security Bank makes sense for a lot of reasons. No fees to open Lines up to 100 of home's value Fast answers through LendLine Great Free Stuff To apply, simply stop by any branch or call LendLine at1-800-Lend FSB. (1-800-536-3372) SIB! ijplj P jijB Get a new First Security Home Equity Line, then choose one of the following. 20" JVC Color TV JVC VCR Hitachi 13" TVVCR Combo AIWA Portable Stereo l .1 J foumrtouswo gmnTiMiTT Applications must be received by May 30, 1997. Prizes only available to households without an existing First Security home equity line. Hazard insurance required. Rate is based on the Wall Street Journal (WSJ) variable prime rate plus .1.25 for loans up to 80 loan to value (LTV); plus 3.75 for loans from 81-90 LTV (max $50,000); plus 5.0 for loans from 91-100 LTV (max $35,000), depending on home s value. As of February 1, 1997, the WSJ prime rate was 8.25 APR. The APR is variable, but the maximum rate cannot exceed 1 8 APR, regardless of the prime rate. $60 annual fee waived the first year. In Utah and Oregon, there is a $250 early termination fee if the line is closed within 24 months. |