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Show B Hilltop Times Feb. 22, 1996 Feb. 22, 1996 Using correct 1040 might lower taxes Using the right Form 1040 to file federal taxes may lower taxes, said Internal Revenue Service officials. For example, in some cases, if you have enough deductions to itemize and use IRS Form 1040, U.S. Individual Income Tax Return the long form your federal taxes may be lower than if you just take the basic deductions. IRS officials recommend if you think you can save some money, fill out several forms and compare the results. In some cases, though, you don't have a choice of forms, explained tax officials. For example, if you claim any adjustment to income, such as child care expenses, or your income exceeds $50,000, you won't be able to use IRS Form 1040EZ. Also, check your tax status before you fill out the tax forms, said IRS officials. You will probably receive the same tax package from IRS that you filed last year. However, your 1995 tax situation may have changed and you don't meet the requirements for the same form this year. No matter which tax form you use, you must pay even if you reyour 1995 federal taxes by April 15,officials. Penalquest an extension, cautioned IRS ties and interest begin accumulating after April 15 on any amount owed. If you filed Form 1040EZ last year, said IRS officials, you will receive a special tax booklet for the 1995 filing season. About 23 million taxpayers will receive the booklet, which includes a special personal identification number, or PIN. This will allow you to file by telephone if you wish. The PIN, which you punch in while filing, acts as your signature. Using the TeleFile system to file the 1040EZ takes about 10 minutes, said IRS officials. The system is open 24 hours a day and is available in both English and Spanish. However, if you don't receive the booklet in the mail, lose the PIN, aren't at the same address as last year or don't have a touchtone telephone, you will have to file by another method, IRS officials explained. Tax officials said you must meet all of the following requirements to use Form 1040EZ: Filing status is single or married filing jointly; Do not claim any dependents; Taxable income is less than $50,000; Owe no special tax. You may claim deduction for age or blindness and credit for child and dependent care expenses, or earned income credit when filing a 1040A. Tax officials said use Form 1040 or the long form for any situation not covered by either the Form 1040EZ or Form 1040A. These include: more than $50,000; Taxable income is You sold a house; You itemize deductions; You had income from sources other than taxes, wages, interest, dividends, etc, like sale of property or barter income; You owe taxes other than regular income tax; You claim adjustments to income, like alimony; You claim credits other than earned income credit, credit for the elderly, or child or dependent care expenses; and You do not itemize deductions. If you filed Form 1040 and used a tax preparer for your 1994 federal taxes, chances are you won't If married and either you or your spouse had receive a tax package for the 1995 filing season. Inmore than one job, total wages don't exceed $61,200; stead, the IRS is sending to more than 30 million Did not receive any advance earned income taxpayers postcards with mailing labels and instructions to take them to the tax preparers. This will save credit payments; Do not claim any tax credits other than earned IRS printing and mailing costs, tax officials said. Another option is to use Form 1040PC, a one- - or income credit; form generated by a personal computer Income is only from wages, salaries, tips, tax- two-pag- e able scholarships and interest; Interest income does not exceed $400; Do not claim an additional deduction for age or blindness for yourself, or both you and your spouse, if you are filing jointly; Do not owe any special tax, such as Social Secuon unreported tips; and rity Do not itemize deductions or claim any adjustments, such as individual retirement account deduction, to your income. To file Form 1040A, you must meet the following requirements: Taxable income is less than $50,000; Taxable income is from wages, salaries, tips, interest, dividends, IRA distributions, taxable portion of Social Security benefits, unemployment compensation, certain scholarships and fellowships, and ' pensions and annuities; Only deduction is for the allowable part of an IRA contribution; and The Internal Revenue Service has granted a federal income tax filing deferment for anyone deployed in support of Operation Joint Endeavor. Service members who are still deployed after March 1, 1996, have an automatic extension until Dec. 15, 1996. Late filers should write "Operation Joint Endeavor" across the top of the return and include a copy of their orders. However, interest will be charged starting April 15 on returns that owe money. For more details, contact TSgt. Eli Bena-videMilitary Pay Branch, at Ext. s, Electronic filing speeds refund Persons wanting to receive their refunds quicker might consider filing their tax forms electronically. Refunds filed electronically usually arrive by mail within three weeks, while refunds from mailed forms take between eight and 12 weeks. An electronic filing program for all active-dutmilitary and their family members is available at the Legal Assistance Office, Bldg. 1278, from 7:30 to 11:30 am. and 1 to 4:30 p.m. weekdays through the end of the tax season. Appointments for electronic filing will be made ONLY during these specific hours by calling Ext. tax program. The office will file 1040, 1040A, and 1040EZ forms through Check your return for errors or mistakes, IRS officials said. Errors can cause delays in refunds or at this program. Taxpayers who wish to file electronically must bring three copies of their completed tax forms, including all a later date if the IRS audits your tax form. For more information or assistance with your fed- relevant schedules; all W-- 2 forms; at least two forms of ideneral taxes, check with your unit or installation tax tification; a blank check for direct deposit information; and their spouse, if married and filing jointly. assistance office or local IRS office, or call toll-fre- e Electronic filing centers are also located in different units (800) 829-104IRS forms and publications may be found at in- around the base. Contact that person directly and not the stallation tax assistance offices, local libraries and legal office Units and personnel offering the service are: post offices. Some computer tax packages may proMSgt. Manuel Alvarado, 729th ACS, Ext. e comvide the forms you need, as do some TSgt. Paul Connell, AETCTRSS, tax formpublication puter services. For one-sto- p TSgt. Michael Gribble, 75th CEG, Bldg. 15, (800) 829-367-6 shopping through IRS, call toll-fre-e MSgt. Steve Kath, 75th CS, Bldg. 891, or write to: SSgt. Phillip Maes, 649th MUNS, Bldg. 1642, Internal Revenue Service MSgt. Donald Pitcher, 75th MDG, Hill AFB Hospital, Forms Distribution Center 74791 PO Box 85627 Lt. Joseph Schenk, Bldg. 1278, f MSgt Phillip Spradling, 75th SPS, Bldg. 1219, Richmond, VA 23285-562- 7. (American Forces Information Service) MSgt Joseph Westbrook, 388th LSS, Bldg. 36, y 0. on-lin- OO-ALCJ- D Forms, booklets available The Legal Assistance Office, Bldg. 1278, has a tax variety of federal and state tax forms, books and IRS publications, as does the base library. These forms are available during regular duty hours. If you need tax assistance, and your UTA cannot help you, come in for legal assistance between 7:30 and 8:30 am. Monday through self-hel- p Thursday. The Ogden IRS Center, 1160 W. 12th Street, also has federal tax forms and publications. Specialized tax forms, prior years forms and instructions can be ordered by calling Written D Forms by modem Federal tax forms can also be obtained through computer and modem. The Internal Revenue Information Service provides tax forms, instructions e over FedWorld, the puband information lic's electronic sources for government information. FedWorld is available free on the Internet at three locations: on-lin- tax questions answered Send written tax questions to the IRS District Director. The writer usually receives a response within 30 days. Call the help number, for the address. rina.ncia.1make jvccorusa tax time of your W-- 2 form. You will also have to furnish information Drovid-ed on all Form 1099s, showing interest income, dividends and other types of income such as unemployment compensation and Social Security benefits. Other information you may have to provide includes: Child care expenses, including the name, address and Social Security number of the child care provider; Children's birth certificates and Social Security numbers; House payments; Moving expenses; 2 Charitable contributions; . Business expenses; Medical and dental expenses; and mation. Alimony and child support You will have to submit a copy payments. easy-to-fin- d IRS offers phone help IRS representatives are also available to answer questions over number the telephone The toll-fre-e for this area is Telnet UdwoHd.gov; File Transfer Protocol ftp.fodwerld.gov; and World Wide Web http:www.ustraas.gov. Dial FedWorld directly by setting modem parity to non, data bits to 8, stop bit to L terminal emulation to ANSI, duplex to full and communication software to dial (709 rnni7 321-802- Financial records kept up to can date, accurate and make filing your federal tax forms much less of a headache, said Internal Revenue Service officials. Instead of waiting until the last minute to try to compile the information, IRS officials recommend you keep a running tab throughout the year. This may include checkbook stubs and a calendar or diary of possible deductible items. Or you might decide to use one of the computer financial packages currently available to help you keep track. In addition, if you are missing a Form W-- or interest forms, or need special forms or publications to complete the tax return, you will have enough time to find the infor- The Internal Revenue Service offers two special tax brochures for military members and their families to help with the federal tax return. IRS officials said it can be confusing determining what counts as income and what's deductible when it comes to a military member's pay, allowances and benefits. The one free pamphlet every military member should read is IRS Publication 3, Tax Information for Military Personnel This pamphlet explains general tax information and includes a breakdown of what's taxable and what isn't, said IRS officials. The second brochure, IRS Publication 945, Tax Information for Those Affected by Operation Desert Storm, explains the combat zone exclusion, filing extensions and the tax situation if an individual dies in a combat zone. At publication time, the president had not designated Bosnia for combat zone benefits, said IRS offi VITA: IRS-traine- state-wid- e d ; cials. However, this could change. Other free tax publications that explain the tax process and may make it easier to file include IRS Publication 1, Your Eights as a Taxpayer, and IRS Publication 17, Your Federal Income Tax. For a complete listing of IRS publications and forms, ask for a copy of IRS Publication 910, Guide to Free Tax Services. For copies of these publications and others, call the 6 or write to: IRS toll-freat (800) Internal Revenue Service Forma Distribution Center PO Box 85627 Richmond, VA 23285-562- 7 These publications may be available through the installation tax office, or local library or post office, IRS officials added. s is (American Forces Information Service) 829-367- e v help for basic problems volunteers are available to help with income tax preparation. Persons with low to moderate incomes or who have basic tax returns may use the free services of the IRS Volunteer Income Tax Assistance program. Users should bring tax records and forms, plus a copy of last year's federal and state returns. Electronic filing is also available for free at some locations. Area VITA sites, which will be open through April 15, are: Davis County Library, 725 Main Street, Bountiful, Mondays, 8 p.m. Davis .County .Library, 562 S. 6-- 1000 East, Clearfield, Tuesdays, 8 p.m. Kaysville Public Library, 56 N. 6-- Main, Wednesdays, Kaysville, p.m. Layton Library, 155 N. Wasatch Drive, Layton, Wednesdays, 5:30-- 7 p.m. Weber County Library, North Branch, 475 E. 2600 North, North Ogden, Thursdays, 6--8 p.m. Ben Lomond High School, 800 Jackson Ave., Ogden, Wednesdays, 5:30-7:3- 0 pan. Marshall White Center (Hispanic), 222 28th Street, Ogden, Thursp.m. days, 5:30-7:3- 0 5:30-7:3- 0 : Newgate Mall, near food court, Ogden, Saturdays, noon-- p.m. Ogden City Mall, downtown Ogden, Saturdays, noon-- 3 p.m. Weber County Library, 2464 Jefferson Ave., Ogden, Tuesdays, p.m., and Wednesdays, 11 a.m.-p.m. Your Community Connection, 2261 Adams, Room 211, Ogden, Fri3 2 days, noon-- 2 p.m. Southwest South, Roy, Library, Tuesdays, 1950 W. 4800 6-- 8 p.m. Persons who are homebound or need help in other languages can call 524-609- h . AX-FOR- Missing items Times Brochures benefit military families 1 DJoint Endeavor deferment Hilltop major headache tax How long should tax records and supporting documents be kept? IRS officials said at least three years. Some financial advisers recommend holding onto the materials for at least six years. In addition, IRS officials recommend keeping all financial records you have, no matter how old, on any asset you continue to own. This may include paperwork on stocks, an automobile or house. Even though you may have received your tax refund or paid the monies owed, it doesn't mean the IRS is finished with your federal tax return for that year. In general, IRS has three years to check the returns. For example, IRS is checking some federal tax returns filed in 1993 for the 1992 tax year. But under certain circumstances, you may find your entire history being audited. If you have any questions on your federal tax return and what financial information you need, call the local IRS office or call toll-fre-e (800) When calling the IRS, be sure to write down the name and telephone number of the individual you talked to, along with the date. IRS officials said this may help you if questions come up at a later date on your tax return. For copies of the free forms and publications you need to complete your federal tax package, call IRS toll-fre- e at (800) 829-367Or write: Internal Revenue Service Forms Distribution Center 829-104- 6. PO Box 85627 Richmond, VA 23285-562- 7 (American Forces Information Service) Earned income credit extended The earned income credit is now available to military members overseas who qualify, said Internal Revenue Service officials. Until now, tax officials explained, those living overseas didn't qualify for the credit because they didn't meet the residency requirement. But under new rules, the credit is extended to overseas military for the 1995 tax filing season. The credit, based on several items, is refundable, said IRS officials. This means if it exceeds your federal taxes or you don't owe any, IRS will send you a check for the earned income credit amount. Also, for the 1995 filing season, individuals without children who meet certain requirements may qualify for the credit, said IRS officials. e Tax officials explained the credit is to help workers. It can be worth up to $2,094 if you have one child or $3,1 10 for two or more, or $314 if you have no children. To file for the earned income credit, you must use either Form 1040A or Form 1040, U.S. Individual Income Tax Return, and, stressed IRS officials, you must meet every requirement. Even if you aren't required to file a federal tax form, you must file to claim this credit: Be sure to attach Schedule EIC to the federal tax forms as part of the tax package you file. Prerequisites if you have children are: File a joint return if married; Have one or more qualifying children, based on age, residency and relationship; Earned income and adjusted gross income of less than $24,396 if you have one qualifying child or less than $26,673 if you have two or more; File the return for the period; and Live in the United States, except for military members stationed overseas. According to IRS, a qualifying child includes son, daughter, adopted child, foster child, grandchild and stepchild under 19 years old at the end of 1995 or under 24 and a e student. However, the age does not matter if the child is totally and permanently disabled. In addition, the child must have lived with you for more than six months or if a foster child, for the entire year, IRS officials added. To claim the EIC if you have no children, you must: File a joint return if married; Have an earned income and adjusted gross income not lower-incom- th Surprise... 3 out of 4 who file a tax return get a refund! Chances are that means you. So the sooner you file the sooner you get money back! IttcSwvcea' wPuttcaw full-tim- exceeding $9,230; Not be claimed as a dependent by another taxpayer; Have lived in the United States for at least six months; and Be at least 25 years old but under 65 at the end of 1995. Be sure rules that pertain to check the credit phase-ou- t to the earned income credit and are available in the IRS tables, said IRS officials. The amounts begin phasing out at $11,300 if you have children and $5,150 with no children. There are two options to take the earned income credit, tax officials explained. You can receive it either monthly when you file your federal tax return. If you decide to take it monthly, you must file a Form W-Advanced Payment Certificate, with your employer. However, if your situation changes and you no longer qualify for the credit, it is your responsibility to file a new form with your employer to stop the payments. Military members who consider claiming the credit must be sure to add all nontaxable income to their income, said IRS officials. This includes combat pay,squarters allowance and basic subsistence allowance. These are all considered income when filing for the earned incomecredit. Specific information on the earned income credit program can be found in the frcs IRS Publication 596, Earned Income Credit Other IRS booklets that may help include IRS Publication 501, Exemptions, Standard Deduction and Filing Information, and Publication 503, Child and Dependent Care Expenses. ifyou think you may qualify for the credit, be sureUo fill out the worksheet. You may be surprised that you no qualify; many people fail to take advantage of this credit, IRS officials said. For assistance with the earned income credit, check with the installation tax assistance office, local I RS office or call or. 5, toll-fre- e (800) 829-104- For copies of free tax forms and publications, call toll' 6 or write to: free (800) Internal Revenue Service Forms Distribution Center PO Box 85627 Richmond, VA 23285-562- 7 Check with the local U.S. consulate or embassy for as sistance or forms if you live overseas, IRS officials added, (American Forces Information Service) 829-367- - |