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Show Is 8. Watch for these mose common errors in report The Sup, 'News, Wednesday. Feb. 24. 1993 Motor fuel used for Agriculture eligible for credit Aueiiitrdundof ih . Utah motor lud equipment. tax is available on state income tux returns for farmers and ranchers vdio purchase gasoline or gasohol solely for the operation of nonhighjy farm engines The Utah State Tax Commission says taxpayers may only claim erode lor the lax paid on the purchase of fuel used in stationary or se!f o o e II""s hi hmcry used ' ura' , ; .' ,'-t- - purpose. Refunds are limited to those taxpayers involved in commercial farming activities: producing resale agricultural crops, "raising livestock and other animals useful to man, or "performing custom agricultural work using nonhighway farm Credit is not allowed for purchases of diesel fuel, nor for fuel used in any vehicle registered for highway use. Claims for credits on your income tax return must be substantiated by keeping legible copies of purchase invoices, receipts, etc. The receipts should show: 1 . The name and address of the di' paver; 2. The number of gallons and motor fuel; of type 3. Where the fuel was purchased; and, 4. The date and amount of the purchase. Cancelled checks do not meet the above criteria to adequately substantiate Im single, Q. The Utah State Tax Commission sees many errors again and again live alone, and have no dependents. Can I file as head of household? A. No. To use this filing status, you must have paid one half the cost of keeping up a home for a child or other qualifying person. See IRS Publication 501. Exemptions. Standard Deduction, and Fill nf Infoi motion. CAUTION ON TAX-FRE- E BONDS: NOT ALL SECURITIES ARE UTAH TAX-FRE- E There has been great confusion about which types of interest or dividends from U.S. obligations are tax-fron the Utah state individual income tax returns. In particular, many mutual funds claim all of the interest or e in Utah, dividends earned are but often only a portion of the mutual fund is invested in U.S. obligations that are clearly exempt from Utah tax, said Tax Commission spokesperson Janice J. Perry. Additionally, she said, the documentation generally provided to taxpayers at year-en- d (such as 1099 and K- -l forms) does not provide the information required by the state of Utah to allow the exemptions. The Tax Commission strongly encourages anyone who claims this deduction to request a copy of our new brochure, Interest from U.S. Obligations, Perry said. This publication contains detailed listings of which specific U.S. securities and obligations are and are not taxable. To request the brochure, call 8 in the Salt Lake metro (801) e within Utah, 1 area, or ee American Heart Association W tax-fre- II HY 14 CERTIFIED FiNMICIAL PLANNER STANDS OUT I CROWD.. fi 530-484- T toll-fre- Planner (CFP) is trained to put your financial affairs in order. Along with prior experience in financial-relate- d career fields, the CFP has completed a rigorous educational curriculum qualifying him or her to do total financial planning. The CFP keeps abreast of current developments that can affect your financial condition. There are many financial planners these days, but look to a the Certified Financial Planner. professional The CFP designation it stands out in A Cprtified Financial a croud. Ted Hallows The interest 1 -- 7- Have Your Taxes Prepared by fr . Jensen m. Harold 24 East 100 North Gunnison - or 528-374- 6 Harold S. Jensen c.p.a. specializes in Partnerships Family Businesses Corporations Social Security Planner He also offers Financial Planning Services to his customers! Check his Credentials as he is also a consultant for large farm operations in Utah and the Midwest! (r Jensen m Harold 24 East 100 North - Gunnison 528-378- 6 or 528-374- 6 tax-fre- of Utah? are service marks Vgrks CFP' and Certified Financial Planner 19S4 insfiuie of Certified Financial Planners 528-378- 5 such as dividends and e is in the State income Certified Financial Planner Suite 2 - Zions Bank Building Salina Utah 529-335- Following are common questions and answers regarding this complex area of taxation: Q - Why is the interest from in Utah? U.S. obligations tax-fre- e A - The Constitutional doctrine of intergovernmental immunity exempts federal obligations from tax by states or their political subdivisions when the obligations are issued to secure credit to carry on the necessary functions of government. Q - What kinds of unearned A - Income from the following sources is exempt from Utah state income tax under United States laws: interest income on bonds or other direct obligations of theUnited States government or its possessions (United States Treasury bonds, notes, bills, certificates and savings bonds; interest or dividends on bonds or securities of any United States authority, or commission instrumentality exempt from state income taxes under federal law. Q What types of securities are taxable under Utah state law? A Income from the following sources is NOT exempt from Utah state income tax: interest or dividends from the Federal National Mortgage Association, (FNMAs) and Government National Mortgage Association (GNMAs). interest on refunds or refunds from the Internal Revenue Service or any other federal agency or de- - ' partmenL Q - How can I tell which obligations are A The U.S. Supreme Court under Smith v. Davis said that to qualify as an obligation of the United States exempt from state taxation, the instrumentalities must: tax-fre- e? be written documents, bear interest, contain a binding promise by the United States to pay specific sums at specified dates, and contain specific congressional authorization which also pledges the full faith and credit of the United States in support of the promise to pay. Q - May I deduct all m Seinors: File long form lo get exemptions Not all tax Securities are Utah Tax free gas Volunteer. errors that slow the processing of returns and delay refunds. Last year the Tax Commission saw 144,000of them. Here are some common errors avoid: to No. 1 - Incomplete return. You forgot something. Be sure to doublecheck before you mail your return. No. 2 - Error in determining tax. Use a ruler on the tax table to help you find your tax for the short form (Note: the first column is for zero dependents on the short-fortable); double-chec- k your math on the long form. No. 3 - Your name or your spouses name doesnt match your Social Security number(s). No. 4 - Error in computing Utah taxable income. No. 5 - No Social Security number and filing status for spouse. No. 6 - Error in computing net refund amount. No. 7 - Filing status is listed as, married joint but no spouse exemption is listed. tion with producing exempt income. Q - How do I claim this de- duction? A - This deduction from the federal adjusted gross income will be taken on line 9 of the state return. Utahns age 65 aid older should file their state income tax using the long form to take advantage of Utahs n retirement exemptio l, the Tax says. Unfortunately, many seniors are failing to take advantage of this tax break when they use the simpler Con-missio- Q - What kind of documentation do I need to claim these deductions? A - All deductions taken for U.S. Government interest will be subject to audit and taxpayers must maintain the following verification to substantiate amounts claimed: information as to the specific U.S. Government obligation and related interest. if the source of the U.S. Government obligation interest is from a S trust, partnership, or corporation, a statement from the entity identifying the specific sources and amounts of interest earned must be provided. A K- -l is not sufficient to substantiate this information, unless it specifically cites the sources and amounts of interest. if the source of the U.S. Government obligation interest is from a mutual fund, a statement from the mutual fund must be provided: A 1099 is not sufficient to substantiate this information if the 1099 disclosure does not provide the detail as required above. Heaths Accounting short form, said Tax Commission spokesperson Janice J. Perry. We sec many Utah short forms coming in from people who apparently are eligible to claim the special $7,500 exemption' created by the Legislature to ease the tax burden on older Utahns, she said. & Mgmt. Services VALDO D. HEATH E.A., A.T.A., A.B.A. ENROLLED TO PRACTICE BEFORE INTERNAL REVENUE SERVICE 550 W. MAIN, SALINA, UTAH 84654 . ACCREDITED TAX ADVISOR ACCRE DITED BUSINESS ACCOUNTANT 529-757- 6 sub-chapt- er INCOME TAX SERVICE BUSINESS & INDIVIDUAL Professional - Experienced Full Accounting Service with Monthly Payroll Quartiey Reports Income Taxes Available u. UTAH iB INDEPENDENT BANK 37 Offices in Salina and Beaver There's no extra charges with our IRAs. Independent Bank, we don't think you should have to pay to invest with us. When you invest in an Individual Retirement Account, there are no hidden fees, no hidden charges and no commissions. And there's no hidden penalties for changing your IRA. Unfortunately for you, the IRA investor, some companies sell IRAs that seem riddled with extra charges. They're spelled out in the fine print. But, unfortunately, you may not discover them until you try to change or move your IRA. We don't have to 'sell'' you an IRA; it's one of the many investment services we provide. If there ever are any upfront charges on a particular investment, you will be fully advised of them before you enter into an agreement. That's the way your local bank does business. in addition, an IRA at Utah Independent Bank is insured by the FDIC with a guaranteed rate of return. At Utah of my income and dividends from U.S. obligations? A No. Exempt U.S. government interest claimed as a deduction must be reduced by the following expenses, if the expenses were claimed as deductions in arriving at your federal adjusted gross income: interest on money borrowed to purchase or carry the bonds or securities; ordinary and necessary expenses paid or incurred in connec tax-fr- ee UTAH INDEPENDENT BANK Depositors insured up to $100,000 Member Federal Deposit Insurance Corporation |