March/April 2000    


Avoid These Tax Mistakes
An IRS Official Explains What to Watch For

Tax season is here, and if it's anything like the last few years, millions of taxpayers will inad- vertently make a mistake.  To help you avoid taxing mistakes, we talked to Steve Danish, an IRS spokesman, to find the six most common mistakes taxpayers make.

Mistake #1:
Incorrect Social Security number.  This is the most common mistake taxpayers make on their returns, according to Danish.  His suggestion: With electronic filing, computers can catch the mistake and eliminate human error."


Mistake #2:
Dumping tax-related records.  You should keep all tax-related documents for at least five years including W-2
forms, statements from financial institutions, and any paperwork relating to deductions that you have taken.

Mistake #3:
Writing down incorrect figures from the tax tables.  "Take your time and be sure your taxable income figure is correct," Danish advises.

Mistake #4:
Incorrectly taking tax credits.  "Tax filers need to be sure they meet income and other



eligibility requirements before claiming the Earned Income, Household, or Child and Dependant Care credits."
Mistake #5:
Claiming a child or dependent twice.  "In cases of divorced parents or a child away at college, be sure you know who is (or isn't) claiming a dependent," Danish said.

Mistake #6:
Filing too soon.  "Some people file their return early because they want to get their money.  However, they may not have received all of their W-@ and 1099 forms, so their income is not accurate," Danis said.

This newsletter provided by:

Dana C. Sydney
Clarence Barney




CFA Asset 
Management, Inc.

 
1801 N. Kickapoo
Lincoln, IL 62656
(217) 732-1528


Securities offered through H.D. Vest Investment Securities, Inc., Member:  SIPC, 6333 North State Highway 161, Fourth Floor, Irving, TX 75038, (972) 870-6000

 

Are You Old Enough for Social Security?

Many workers anxiously await the day they retire -- either completely or partially -- from work.  Increasingly, workers plan to retire early, but doing so could impact and reduce Social Security benefits.  Here's a look at the age which you can retire with full benefits.

Year of Birth/Full
Retirement Age

  • 1937 or earlier / age 65

  • 1938 / 65 and 2 months

  • 1939 / 65 and 4 months

  • 1940 / 65 and 6 months

  • 1941 / 65 and 8 months

  • 1942 / 65 and 10 months

  • 1943 - 54 / age 66

  • 1955 / 66 and 2 months

  • 1956 / 66 and 4 months

  • 1957 / 66 and 6 months

  • 1958 / 66 and 8 months

  • 1959 / 66 and 10 months

  • 1960 and later / age 67

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