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March/April 2000
Avoid These Tax
Mistakes
An IRS Official Explains What to
Watch For
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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
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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. |
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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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