Newspapers / The News-Record (Marshall, N.C.) / Feb. 19, 1987, edition 1 / Page 12
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'86 Requirements The following chart, based on filing status, shows the minimum amount of gross income which must be received in 1986 before a return is required to be filed. In addition, you will have to file an income tax return if any of the follow ing situations apply: Single (under age 65) Single (age 65 or over) Married filing a joint re turn Married filing a joint re turn (one spouse age 65 or over) Married filing a joint re turn (both spouses age 65 or over) Married filing a separate return Surviving spouse (qualify ing widow(er) with de pendent child) Surviving spouse (age 65 or over) $3,560 $4,640 $5,830 $6,910 $7,990 $1,080 $4,750 $5,830 ? You received tips from which social security tax was not withheld. ? You were ill business for yourself and had net earnings of $400 or more from that business. This is called self employment income. ? You had unearned income of $1,080 or more, such as dividends or inter est. and can be claimed as a depen dent by someone else. This is particu larly important to students. ? You received Advance Earned In come Credit payments. ? You owe any alternative minimum tax. ? You owe any tax on an individual retirement arrangement (IRA). You must also file a return to obtain a refund of any income tax withheld, even if you do not meet any of the requirements specified above. Allocated Tips May Be Income Employees to whom tips are allo cated should report the allocated tips as income on their income tax returns, according to the Internal Revenue Ser vice. Tips are allocated by the employer, who compares the total of all tips re ported by the employees with eight percent (or a lower percentage) of the establishment's total food and bever age receipts. If records show that the total tips reported by the employees falls below the applicable percentage, the employer will be required to allo cate the difference between the two amounts among those employees who receive tips, and report the difference to the IRS. Tip allocations are made only to employees who receive tips directly from customers unless there is an agreement that they be allocated among all tipped employees. Employ ers should withhold income, social se curity or railroad retirement tax only on the tips reported by the employees, not on the allocated amounts. Food and beverage establishments where tip ping is customary and that normally employ more than 10 employees are required to file an annual report with the IRS. The amount employees must include on their tax returns may be more or less than the allocated amount. However, the IRS may use the employ er's annual report to determine that a tipped employee received a larger amount of tip income than reflected by the tip allocation. With advance written approval from the IRS, certain employers or groups of employers may apply to have the allo cation percentage reduced from eight percent to as low as two percent, if they can establish that the actual tip rate of the establishment is lower than eight percent of the establishment's total gross food and beverage receipts. Employees who earn $20 or more a month in tips while working for one employer must report the total amount of these tips each month to their em ployer by the 10th day of the following month. Some employers may require these written reports more than once a month. The monthly tip report must contain the employee's name, address and so cial security number. The employer's name and address, the period covered and the total amount of tips must also be in the report, which must be signed and dated by the employee. Free IRS forms are available for maintaining a daily tip record and preparing monthk reports. Call or write the IRS Farmer's Tax Guide Provides Free Tax Help A free publication explaining how tax laws apply to farming is available by writing the Internal Revenue Ser vice. according to the IRS. IRS Publication 225, Farmer's Tax Guide, contains 19 chapters covering such topics as farm income, farm busi ness expenses, tax credits, certain farm ing tax shelters, and soil and water conservation expenditures. Written in easy to understand lan guage. the guide can be a valuable resource at tax time as well as a handy reference all year. It contains a sample return with step-by-step directions on filling out not only Schedule F. Farm Income and Expenses, but also eleven other forms and schedules dealing with tax situations common to most farm ers. As a year round reference tool, the 80-page guide contains a calendar of important tax dates, tips on methods of recordkeeping and accounting, and other useful topics. The first page, "Items of Interest," alerts readers to some of the more important changes in tax law which affect the farmer as a taxpayer. Information Yours For Asking For a complete list of publications and numbers , see box on Page 5 of this section You can order tax forms and publications from the IRS Forms Distribution Center for your state at the address below. Or, if you pre fer, you can photocopy tax forms from reproducible copies kept at many participating public libraries In addition, many of these libraries have reference sets of IRS publica tions which you can read or copy. Sand to "Form Distribution Cantor" M you are located in: for your state North Carolina, South Carolina. Tennessee. P O. Bo* 25866. Virginia Richmond. VA 23260 Detach At This Lin* Please follow these guidelines when ordering IRS forms and publications This will help us process your order as quickly as possible You will receive two copies of each form or schedule you request and one copy of each publication or instruction booklet. Please order only the items you need FORMS/INSTRUCTIONS/ SCHEDULES In the box to the left, list each form, in struction booklet, and schedule you need by its number, not its title List forms and instructions in numerical order List schedules in alphabetical order (When ordering instructions or schedules, be sure to identify the forms they go with.) In the box to the right, list each publica tion you need by its number, not its title Please list them in numerical order Carefully print or type your name and ad dress on the label provided below This la bel will be used to send your order to you Detach above and mail this order form and label to the IRS address shown tor your area PUBLICATIONS Name Number and street City or town. State, and ZIP code Need Help Tackling Your Taxes? Helen Hunter will give you the expert assistance you want and need to tackle your tax return. Call her now. 649-32 1 2 or 649-3444
The News-Record (Marshall, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Feb. 19, 1987, edition 1
12
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