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
|