Show Salina SunGunnison February 8 1995 Valiev News Paoe 3 A helpful selection of tax tips from the files of the IRS and the Utah State Tax Commission Don't miss out on Motor fuel used for agriculture eligible Tips to choosing a Earned Income Credit tax practitioner Utah that lies in By Dennis Hinkanip Utah State University Extension Service Hundreds maybe thousands of Utah families are missing out on federal tax credits that they simply are not aware The program is called Earned Income tax Credits (EIC) The tax savings are substantial A are available family meeting the basic requirements can earn up to 41434 If additional are met a family may requirements qualify for up to $2528 The Earned Income Tax Credit is available to any household with chilthat had an adjusted gross inof $25296 or less Households without children who earn $9000 or less are eligible for tax credits of up to $306 Families in this income range are also eligible for tax credits for health insurance premiums paid for their children and another credit for a childbomin 1994 and a credit for two miss out on this Since the only when money by not filing is available to single for your tax return to a is you federal it pays income to be tax through April New laws allows annual filing for domestic labor 15 dren If you think you may have qualified the past three years you can still file an amended return to receive the money youmayhavemissedouton If you filed a return for those years you can now file a 040X amended return and attach an EIC form Ifyoudidnot file for those years because you didn't owe federal income tax there is no or more children penalty for filing a late return to obtain EIC Most of the forms you need According to Jan Hadley Utah Public Affairs officerfor the Internal Revfor EIC are available at your local post enue Service last year 75000 Utah office or library families filed for this credit and reShe says there is also a program ceived a total of about $70 piillion that allows you get part of the money We know that nationally there are you think you might qualify for in about 14 million households with chil1994 in advance by filing for 5 dren eligible but only about 12 milwith your employer Your employer lion actually file So this may mean can then add the expected return to that there are several thousand fami each paycheck come person responsible careful professional choosing prepare your credit returns parents single or married foster parHere is a list of suggestions from the Internal Revenue Service: who else ents or anyone has a depenAvoid preparers promising a refund claiming a special relationship with dent child less than 19 years old livthe IRS or boasting of ways to beat the tax system ing with them The age limit increases Sign only a completed tax return prepared in ink or typed to 24 if the dependent child is a full Make sure the preparer signs the tax return and provides an identification time student Apermanently disabled number as required by law child of any age also qualifies says Never allow a preparer (other than bank preparers) to endorse cash or Dr Jean Lown consumer economist negotiate tax refund checks in the USU College of Family Life Select someone or a firm that will be available if you have questions about Married but filing separately is the the preparation of your tax return after it has been filed only status that does not qualify she Consider filing your return electronically which will save approximately says three weeks in processing Look for a preparer who offers the sendee Lown says part of the problem with the tax package your received in the mail to your practitioner so he Take earned income tax credits is that they f label and the or she can use your forms You should also use your and difficult to are envelope provided by the IRS It will speed processing of your refund understand You can get help at the Before mailing your return make sure your Forms 2 are attached and IRS office your county USU Extenthat all Social Security numbers on the return are correct since missing or sion office and most Social Security incorrect numbers could delay all or part of your refund this year offices There is also a tollfree numIf you cannot afford a tax professional volunteers trained by the IRS are For ber you can call: available at over 50 locations to help low income taxpayers Call 1 on a recorded message specifically to find out where volunteers are located EIC call Volunteer Income Tax Assistance (VITA) is also available at many locations now The over If you hire someone to work in your home new law makes it easierfor you pay Social Security taxes on their You'll report the earnings earnings a year instead of quarterly and on how much you employ lesstax Work- - your employee will receive o for the Social Security If you have questions about the you and refunds its l by this new law include maids child care providers gardeners and othersxyho provide house hold (nploymeat including is their main occupation Effective with 1994 earnings no So- cial Security tax is due unless the earnings are at least $1000 In those cases where a household worker was paid less than $1000 during the year and ranchers Farmers who purchase gasoline or for the operation of nonhighway farm engines may claim a credit refund of the Utah motor fuel tax on their gasohol solely state income tax return The Utah the tax paid machinery' purposes Refunds activities: animals State Tax Commission says taxpayers may only claim credit for farm on the purchase of fuel used in stationary or used solely for nonhighway (not on public roads) agriculture are limited to those taxpayers involved in commercial fanning producing resale agricultural crops: raising livestock and other work using useful to man or performing custom agricultural nonhighwav farm equipment Credit is not allowed for purchases vehicle registered Claims for highway use on your income for credits keeping legible copies show: 1) of purchase The name and address of diesel fuel nor tax return invoices receipts must etc for fuel of the taxpayer and type of motor fuel 2) The number of gallons 3) where the fuel was purchased 4) The date and amount of the purchase Canceled checks do not meet the above criteria to adequately gas purchases Home computer users should find it easier this year to do their taxes tyith the Internal Revenue Service for providing opportunities Use the printed label and envelope provided by the Utah State in your tax forms package when filing your return Doing the processing of your tax return Commission will help expedite 1040 Federal Return no longer required 4 Power does not corrupt men fools however if they get into a position of power rapt power — George Bernard Shaw filing as well as retrieving federal tax forms and publications Starting February 6 CompuServe subscribers will be able to send their completed tax returns electronically serto the IRS through that vice America Online ( AOL) expects to offer electronic filing to its subscribers for two of their children The 1040PC is a condensed format Electronic filing offers greater ac- omitting all the blanks and printing acknow ledgment that IRS ac- the line numbers and entries only for cepts the return and the security and thsoe lines on the tax form that the convenience of depositing a refund taxpayer actually uses The resulting directly to a taxpayer’s bank account list that printout is a electronic The IRS tested can cut a return to two pages Stanin a filing with CompuServe dard computers produce the 1040PC area last year About 300 taxpay- format on plain paper ers participated This yeaFs test is The IRS is also making hundreds with a limit of 30000 of its most nationwide popular forms instrucreturns IRS will assess the test results tions and publications available curacy users who aren't or CompuServe or AOL subscribers who choose not to file electronically may still shorten theirpaperwork and choose direct deposit for their refunds through 1040PC option offered in software promany tax preparation Computer Three services AOL and GEnie - as CompuServe well as FedWorld a government bulletin board now have these items available for both returns preparers and individual taxpayers Users will need software computer displays and printers capable of handling one of the available file formats grams Speed up your 1995 TAX REFUND later in February Users should check with their online services regarding required tax software and transmispreparation sion fees! Taxpayers may buy the software locally or on CompuServe The IRS does download it directly not develop or sell tax preparation software A taxpayer transmits the completed service which return file to the converts the file from the software's the specifimeet to format propriety cations for electronic filingand sends it on to the IRS The IRS ELECTRONIC TAX FILING see Carolyn Brock todav Oder 23 llears Experience Electronic Tax notifies the service the whether the return is accepted on if not which items the taxpayer must taxpayer through Filing can sade you time vdaitiny for your refund correct After the IRS accepts the return the taxpayer mails directly to the IRS a signature docua Form attaching any subscriber forms Each tax returns may transmit up to three - for example a married couple could transmit their joint return and the ment available Use DIRECT DEPOSIT (or an eden (aster Refund Call Carolyn Brock 5287206 for an appointment! Tax that When filingyCrur Utah state income tax return: you no longer need to attach a copy of the yaur federal return unless you are filing a nonresident or resident return returns from the two years in deciding whether and how to continue the program substantiate Use the Label Home computer uses can file directly Second of two year trial period used in any be substantiated by The receipts should in reporting household ployment and paying the Social rity taxes call the Internal Revenue changes outsidehelpyou'llpay covered for tax credit There may be a substantial interest penally for banking somewhere else Our Certificates of Deposit offer some of the best rates of any bank or credit union in Utah Ifyou do happen to find a better rate somewhere else bring us in a copy of the offer and we match it So look around And then come to us 2IONS BANK Miabtr FDIC "Substantial penalty for early withdrawal We reserve the right to limit this offer to product features and services currently offered by Zions Bank Offer expires 6195 |