"
Newspaper Archive of
Pahrump Mirror
Pahrump, Nevada
Lyft
March 27, 1997     Pahrump Mirror
PAGE 17     (17 of 32 available)        PREVIOUS     NEXT      Full Size Image
 
PAGE 17     (17 of 32 available)        PREVIOUS     NEXT      Full Size Image
March 27, 1997
 

Newspaper Archive of Pahrump Mirror produced by SmallTownPapers, Inc.
Website © 2022. All content copyrighted. Copyright Information.     Terms Of Use.     Request Content Removal.




25 of the Most Common Tax Preparation Errors (Reporduced from the Ernst and Young Tax Guide 1997) 1. Most importantly, check your math. 2. Double-check that your social security number has been correctly written on the return. 3. Include your social security number on each page of the return so that, if a page is misplaced by the IRS, it can be reattached. 4. Check that you have claimed all of your dependents, such as elderly parents who may not live with you. 5. Include on the return the social security numbers for all dependents who were born on or after November 30,1996. 6. If you are single and have a dependent who lives with you, check to see if you qualify for the lower tax rates available to a head of household or surviving spouse with a dependent child. 7. You may be eligible for the earned income credit if you do not file as married filing separately. If you have one qualifying child and your earned income and modified adjusted gross income for 1996 are less than $25,078 ($28,495 if you have more than now qualifying child), you may qualify. If you do not have a qualifying child, but are between the ages of 25 and 65, and your earned in- come for 1996 and modified adjusted gross income are less than $9,500, you may qualify as well. 8. If you are married, check to see if filing separate returns rather than a joint return is more beneficial. 9. Attach all Copy Bs of your W-2 forms to your return in order to avoid corre- spondence with the hRS. If you received a Form 1099-R showing Federal in- come tax withheld, attach comp B of that form as well. 10. You may be able to claim the additional standard deductions if you are blind or 65 years of age or older. 11.Be sure to sign your check and write your social security number, the form number, and the tax year on the face of any checks made out to the IRS. 12.Be sure that your Form W-2 and all 1099s are correct. If they're wrong, have them corrected as soon as possible so that the IRS's records agree with the amounts you show on your return. 13. If you worked for more than one employer, be sure to claim a credit for any overpaid social security taxes withheld from your wages. 14.If you received a state tax refund, make sure you have not included too much of your refund in your income. State tax refunds may not be taxable if you did not get a tax benefit from deducting them. If, for example, you used the standard deduction in the year in which the taxes were paid, you do not have to include the refund in income this year. 15. Deductible real property taxes should be distinguished from assessments paid for local benefits, such as repair of streets, sidewalks, sewers, curbs, gutters, and other imorovements that tend to imorove orooerties. Assessments of this 2n,[ Lurlt tarmers Insurance Agent in tte United Stat Worden's Insurance Agency PHONE QUOTES NOTARY IMMEDIATE ISSUE SR22's MORTGAGE INSURANCE ALL LINES BROKER AUTO- HOMEOWNERS. MOBILE HOMES RECREATIONAL VEHICLES LIFE, HEALTH COMMERCIAL. LONG-TERM CARE BONDS BAIL BONDS 6 Licensed Agents for Convenient Professional Service NELL WORDEN-DANIEL Agent & Owner 2210 E. Commercial Rd. PO Box 580 Pahrump, NV 89041 (702) 727-5241 Dedicated to being Pahrump's Premier Insurance Company/. Pa'hrump Valley Gazette, Thursday, March 27, 1997 17 type generally are not deductible. 16. Make sure to sign and date your return and enter your occupation. If you are filing a joint return, be sure that your spouse also signs as required. 17. Only a portion of your social security benefits may be taxable. If your income does not exceed a certain amount, none of it may be taxable. 18. Check last year's tax return to see if there are any items that carry over to this year, such as charitable contributions or capital losses that exceeded the amount you were previously able to dedue ! 9. If you can be claimed as a dependent o someone else's return, do not claim a personal exemption on your return. Your standard deduction may be limited as well. 20. Fill out Form 8606, Nondeductible IRA Contributions, for your contributions to an IRA account, even if you don't claim any deduction for the contribution. 21.Recheck your basis in the shares you sold this year, particularly shares of a mutual fund. Income and capital gains dividends that were automatically rein- vested in the fund over the years increase your basis in the mutual fund and thus reduce a gain or increase a loss that you have to report. Also, any "front end" or purchase fees are still considered part of your cost basis for tax pur- poses, even through they reduce your investment in a mutual fund. 22. Recheck that you have used the correct column in the Tax Rate Table or the right Tax Rate Schedule for your filing status. 23.Don't miss deadlines: December 3 l--set up a Keogh plan; April 15--make your IRA contribution; April 15--file your return or request an extension. 24. If you regularly get large refunds, you're having too much withheld and, in effect, giving an interest-free loan to the IRS. Changing the number of allow- ances you claim on a W-4 form will increase your take-home pay. 25. Keep copies of all documents you send to the IRS. Use certified mail for all important correspondence to the IRS. Don't forget to keep your records in' good shape so that you can find answers to any IRS questions about your re- turn. Copyright 1997 Ernst & Young LLP This information is not intended for use without professional advice. LEGAL DISCLAIMER Five Needed Reforms Based on MONEY's re- view of your operations, they would suggest the following five steps: Set up an independent board of directors. Cur- rently the IRS is a troubled organization with an insular, change- averse culture and an un- wieldy board of 535 con- gressional directors who pull it in different, often conflicting, and direc- tions. Congress should decide on the IRS core mission, then establish a board of outside directors, appointed b the President and approved by Con- gress. Much like the Fed- eral Reserve Bank's Board of Governors, the IRS board should have broad authority to set pri- orities and direct re- sources in more consis- tent, cost-effective and taxpayer-friendly ways. Where possible, priva- tize. You might follow the successful example of New York State, which cut its paper-return process- ing costs by nearly 30 per- cent by hiring Fleet Finan- cial Services to do the job in 1993. New York dealt with public fears that pri- vate processing might threaten taxpayers' pri- vacy by holding Fleet to the same disclosure rules as employees of the state tax department. So far there have been no prob- lems. Focus on customer ser- vice. Begin with your phone system. Make it a top priority for your tele- phone assessors to have real-time access to all tax- payer files. Increase accountability. Congress should consider amending Section 6103 to make it clear that only in- formation about specific taxpayers should be with- held from the public - not information about the IRS itself. Simplify the tax code. Congressional tax writers need to reduce the num- ber of changes they make to the tax code. More im- portant, Congress should seriously consider replac- ing the current code with a simpler, more efficient system that is easier to ad- minister. Valley Electric Association Monthly Board of Directors Meeting Thursday, March 27, 1997 9am At the VEA Main OfficeBuilding, Highway 372 one mile West of highway 160 All VEA members are invited to attend ABI SER- VICES LAVEDA & BONNIE 351 S. FRONTAGZ RD. PAmatn, NZVADA 89048 PHONE- (702) 727- 0404 FAX (702) 727- 0404 ACCOUNTING BOOKEEPING & INCOME TAX W OFFER ELEC--  TRC-IC Com, zmmruu 1 ExP-aumczz 1 RZLXABLE ! FRIENDLY l I0% DISCOUNT TO SENIORSN mmmmmmmmmmmm m