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Show Tax Supplement, February, 1985 Studies May Be Deductible If Required by Job Job-Relate- d Expenses for education relevant to a taxpayers current employment may be deductible, the Internal Revenue Service says. To qualify, the expenses must meet at least one of two specific guidelines. Taking the course of study must be mandatory for continuance in ones current employment status for example, a teacher required to take a course to retain a teaching position. If not, the course must be helpful in maintaining or improving skills which are required in ones present employment for instance, a television repairman taking a course to keep up with the latest changes. However, the cost of other educational expenses are not deductible. Expenses for education that prepares one for a new trade or business such as a journalist studying law may not be deducted, even if the education is required or beneficial in the taxpayers present employment. Similarly, the expense for study to help meet the minimum educational requirements for a current position is not an allowable e deduction for example, a e engineering student who has a job in a minor engineering capacfull-tim- part-tim- ity. Educational expenses include amounts spent on tuition, books, supplies, laboratory fees, similar items, and certain travel and transportation costs. Educational expenses other than travel and transportation are itemized deductions and should be listed on Schedule A (Form 1040) as miscellaneous deductions. Travel and transportation are deducted as adjustments to income using Form 2106. Additional information on educational expenses appears in the free IRS Publication 508, Educational Expenses, available by using the mail order form in the tax package or calling the IRS. Taxpayers Get Help from IRS Tele-Ta- x Taxpayers with tax questions can Tele-Taand listen to recorded tax information provided by the Internal Revenue Service. The recorded information service offers more than 150 information tapes on tax subjects such as filing requirements. itemized deductions, tax credits, dependents, and adjustments to in- call x come. n For users of (tone sigis available nalling) phones, Tele-Ta24 hours a day, seven days a week. These taxpayers call the local push-butto- x year-roun- Special Tax Benefits for Older Americans Lower-Incom- e Filing Requirements for 1984 Tax Returns The following chart, based on filing status, shows the minimum amount of gross income which must be received in 1984 before a return is required to be filed. Single (under age 65) Single (age 65 or over) Married filing a joint return Married filing a joint return (one spouse age 65 or over) Married filing a joint return (both spouses age 65 or over) $3,300 $4,300 $5,400 $6,400 $7,400 Married filing a separate return $1,000 Surviving spouse (Qualifying widow(er) with depen$4,400 dent child) Surviving spouse (age 65 or $5,400 over) In addition, you will have to file an income tax return if any of the following situations apply: You received tips from which social security tax was not withheld. You were in business for yourself and had a net earning or $400 or more from that business. This is income. called You had unearned income of $1,000 or more, such as dividends or interest, and can be claimed as a dependent by someone else. This is particularly important to students. You received Advance Earned Income Credit payments. You have alternative minimum tax You withdrew from your IRA You must also file a return to obtain a refund of any income tax withheld, even if you do not meet any of the requirements specified above. Using Your Home In Your Work If you use a part of your home regularly and exclusively for business purposes, you may deduct a part of the operating and depreciation expenses on your home as an itemized deduction, the Internal Revenue says. If you are on outside salesperson or if your employer reimburses you for these expenses and you include the reimbursement in income, you may deduct the expenses as an adjustment to gross income. For additional information, taxpayers can order the free IRS Publication 587, Business Use of Your Home, using the handy order form in the tax Taxpayers Can Get Special Tax Credit The Earned Income Credit is a refundable tax credit available to certain working taxpayers who earned less than $10,000 in 1984, the Internal Revenue Service said. The credit will be paid to taxpayers who qualify even if it exceeds tax liability or the taxpayer owes no taxes. Some taxpayers could receive a credit of as much as $500, according to the IRS. To be eligible for the Earned Income Credit, taxpayers must: both an Adjusted Gross Income and Earned Income (including those of the spouse, unless the taxpayer qualifies as an unmarried head of . household) of less than $10,000; and 2. file as married filing jointly, head of 1. have household, or qualifying widow or widower; and 3. not have excluded any income earned in a foreign country or a U.S. possession, or claimed a deduction for a foreign housing amount; and 4. live in a home with a dependent child for the whole year. If the taxpayer qualifies as a head of household because of an unmarried child, that child must live with the tax- payer, but does not have to be claimed as a dependent. Taxpayers may elect to receive their credit in one of two ways. If they are eligible, they can receive it when they file their return, or they may choose to have their employer include advance payments in their paychecks throughout the year, the IRS noted. Additional information on the Earned Income Credit and advance payments is available in the free IRS Publication 596, Earned Income Credit. For older Americans, a rapidly growing segment of the nation's population, the tax laws offer a number of special tax benefits, according to the Internal Revenue Service. Single persons 65 or older do not have to file a federal income tax return if their income was less than $4,300. The limit for a married couple filing a joint return is $6,400 when only one spouse is 65 or older, and $7,400 if both spouses are 65 or over. For this purpose, persons are considered to be 65 on the day before their 65th birthday. Anyone 65 or older and filing a tax return is entitled to a double personal exemption of $2,000 for single persons and $4,000 for a married couple filing a joint return (both 65 or older). Main, Taxpayers who have been out of work and collecting unemployment benefits may owe income tax on those benefits if total income for the year exceeds certain limits, the Internal Reveune Service said. Generally a single taxpayer will have taxable unemployment compensation if his or her total income is more than $12,000. Married taxpayers filing jointly will be taxed if the total income exceeds $18,000. For more information on this subject, taxpayers can read the instructions in their tax return packages, or obtain a free copy of IRS Publication 905. Tax Information on Unemployment Compensation, by calling or writing the push-butto- n Tele-Ta- Another special benefit is the Credit for the Elderly and the Permanently and Totally Disabled. The credit can in some cases reduce taxes owed by as much as $750 for single persons and $1,125 for married couples filing a joint return. Starting in 1984, individuals under 65 will be eligible for this credit only if they retire with total and per- has been ten weeks since you mailed your 1984 tax return, we will be able to check the status of your refund. Automated Refund Information will not be available between January 1st and March 15th. All lax packages. Publication 910. brochure (Publicaand the Tele-Tation 163) also have lists of topics covered by the tapes. Publication 910 is available by using the order form in the tax package, or by writing or calling brochures the IRS. The free are also available at many local banks and libraries, or it may be ordered x Tele-Ta- x front IRS. If a taxpayer calls from outside the numlocal dialing area of any Tele-Ta- x ber. there will be a long distance charge. assistance to individuals age 60 and over. Contact your local IRS office for locations near you. You may obtain free publications by using the mail order form in your tax package. Publications of special interest to older taxpayers include: manent disability and have income from a public or private employer because of that disability. Senior citizens who are thinking about selling their personal residence should consider the $125,000 exclusion of the gain on the sale of their home. An awareness of the tax consequence is essential before selling a personal residence at any age, but doubly so for those age 55 or older to whom this benefit applies. Taxpayers needing assistance with their returns can turn to Tax Counseling for the Elderly, an IRS program through which organizational volunteers provide free tax information and 502 Medical and Dental Expenses 505 Tax Withholding and Estimated Tax 523 Tax Information on Selling Your Home 524 Credit for the Elderly and Permanently and Totally abled Join Carbon Credit Union EVERYONE CAN JOIN 745 E. 200 South Price (2 blocks south of Safeway) Phone 637-244- 3 WE FEATURE SAVINGS ACCOUNTS Presently Paying Passbook 6 FCD FCD FCD 90 Day 9 Cert. 10.25 Cert. 11.25 Year 2 Year 1 SSSKnc. Utah 84528 IRA ACCOUNTS 687-240- 3 637-651- 3 687-223- 4 - Reasonable Rates Daily (no minimum) the Dis- 554 Tax Benefits for Older Americans 575 Pension and Annuity Income 910 Taxpayer's Guide to IRS Information, Assistance and Publications 915 Tax Information on Social Security Benefits land Tier I Railroad Retirement Benefits) REGULAR SAVINGS P.0. Drawer of Returns Expertly Prepared x year-roun- d IRS. Business Phone. ..(801) Price Phone (801) Residence Phone. (801) All Types For rotary (dial) or is (pulse dial) phone users, available during normal weekday business hours. These taxpayers should call the special dial telephone number listed in the previously mentioned publications and tell the IRS operator the number of the tape or topic he or she wishes to hear. Tele-Ta- x has been expanded this year to include Automated Refund Information at selected locations. If it Unemployment Compensation May Be Taxable MARK JUSTICE INCOME TAX PREPARATION 285 South number found in the lax brochure, and in the package. Tele-Ta- x free IRS Publication 910. Taxpayer's Guide to Information, Assistance and Publications. By pressing the appropriate numbers on the phone, the taxpayer hears the tax information message he or she wants. Tele-Ta- x 7 7 Yearly Certificates 10.25 2 Year Certificates ,11.25 |