MINORITY BUSINESS REPORT
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Determining the Taxability of Your Social Security Benefits \
- , Since 1994. the maximum
Z amount of Social Security benefits
subject to taxation has been 85
^ percent. Does this mean that 85
percent of the Social Security ben
efits of all taxpayers is now tax
able? No. Benefit recipients apply
a formula to determine 1) how
'*? much, if any, of their benefits
* would be taxable, and 2) the actu
X al amount that is taxable.
>?;< To What Extent Are the
1 Benefits Taxable?
*?; To determine if Social Security
^benefits are taxable, you must add
- adjusted gross income (AGI), tax
" exempt interest income and one
2 half of the Social Security benefits
* received during the year. This is
- called "provisional income." If
* this total exceeds $25,000 ($32,000
* ffcr married taxpayers filing joint
?ly; $0 for married taxpayers filing
* separately who lived with their
* Jipouse at any time during the
J-Vear), then part of the Social
; Security benefits will be taxable.
- How Much Is Taxable?
* If your provisional income
? exceeds $25,000 ($32,000 for mar
J ried taxpayers filing jointly) but,
.not $34,000 ($44,000 for married]
?taxpayers filing jointly), benefits'
* subject to tax are the lesser of
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either I) one-half the excess over
$25,000 ($32,000 for married tax
payers filing jointly) or 2) one-half
of the benefits received.
A single taxpayer has an AGI
of $25,000,tax-exempt interest
income of $2,000 and Social
Security benefits of $6,000. The
amount subject to tax is $2,500;
that is, the lesser of 1) one-half of
the excess of $5,000 (provisional
income being $30,000 ($25,000 +
$2,000 +$3,000)) or 2) $3,000,
one-half of the Social Security
benefits.
If provisional income exceeds
$34,000 ($44,000 for married tax
payers filing jointly, $0 for married
taxpayers filing separately who
lived with their spouse at any time
during the year), benefits subject
to tax are the lesser of 1) 85 per
cent of the benefits received, or 2)
the sum of a) the smaller of the
amount taxable under prior law or
$4,500 ($6,000 for married taxpay
ers filing jointly; $0 for married
taxpayers filing separately who
lived with their spouse at any time
during the year), plus b) 85 per
cent of the excess over $34,000
($44,000 for married taxpayers fil
ing jointly; $0 for married taxpay
ers filing separately who lived with
their spouse at any time durihg the
year).
For purposes of "2 a)" for both
joint and single filers, "the amount
taxable under prior law" is calcu
lated by first adding 1) AGI plus 2)
50 percent of the Social Security
benefit plus 3) tax-exempt income.
The amount subject to tax under
prior law is the lesser of 1) one
half of the excess of that total over
$25,000 for single filers ($32,000
for joint filers, $0 for married filing
separately) or 2) one-half of the
Social Security benefit.
Example: Taxpayers are mar
ried, filing jointly with AGI of
$40,000 and have Social Security
benefits of $16,000. The amount
subject to tax is $9,400; that is,
$6,000 plus 85 percent of the pro
visional income in excess of
$44,000 or $3,400 (85 percent of
$4,000).
(Optional) Use the accompa
nying worksheet to help determine
the taxable portion of Social
Security benefits.
If you would like additional
information, please write care of
Dean Witter Reynolds Inc., 380
KnollwootfvSt., Suite 500.
Winston-Salem, NC 27103.
Dean Witter is not a tax or
legal adviser. Consult your tax or
legal adviser before making any
tax-related investment decisions.
Information and data in this
report were obtained from sources
considered reliable.
Their accuracy or complete
ness is not guaranteed, and the
giving of the same is not to be
deemed a solicitation on Dean
Witter's part with respect to the
purchase or sale of securities or
commodities. (Optional worksheet
follows)
Investment Notes
Mithaol J. Robinson
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Worksheet to determine taxability of Social Security benefits
Use this worksheet in conjunction with the foregoing^article to help
you determine the taxable portion of your Social Security benefits.
1. Adjusted gross income (AGI)
2. Tax-exempt interest income
3. One-half of Social Security benefits
4. Add lines 1, 2 and 3
5. Enter $25,000; $32,000 if married filing jointly; $0 if
married filing separately and living with spouse
6. Subtract line 5 from line 4
(If $0 or less, no benefits are taxable)
7. Enter one-half of the amount in line 6
8. Enter smaller of line 3 and line 7 ;
0. Enter $34,000 ($44,Q00 if married filing jointly; $0 if
married filing separately and living with spouse)
10. Subtract line 9 from line 4 (If $0 or less, line 8 is the taxable
portion of the taxpayer's Social Security benefit. If greater than
$0, continue with this worksheet)
11. Multiply line 10 by .85 '
12. Enter the smaller of (a) line 8 or (b) $4,500 ($6,000 if
married filing jointly, $0 if married filing separately
and living with spouse)
13. Add line 11 and line 12
14. Multiply Social Security benefit by .85
15. Enter the smaller of line 13 or line 14
(This is the taxable portion of Social Security benefits.)
Dean Witter is not a tax adviser. Consult your personal tax
adviser.
IJohnson to replace Burrell as director at Hooper Funeral Home
Hooper Funeral Home. 1415
J. E. Fourteenth St., recently
? announced the addition of
* Grantheum Johnson as the Firm's
J- new manager and funeral director.
* Johnson. 34, replaces Gregory
Burrell, the Firm's former manag
f er.
Although Johnson is new to
; Hooper Funeral Home, he is cer
| tainly no stranger to the funeral
' service industry. Johnson comes to
* Hooper following a three-year
stint with Piedmont Memorial
Gardens as the private cemetery's
sales manager. At Piedmont
i Memorial Gardens, Johnson was
i responsible for all sales activities
! ? involving cemetery plots, mau
* soleum crypts, vaults, and grave
markers. Johnson also assisted
families with the administrative
procedures necessary for arrang
ing interments.
"I really enjoy helping clients
and families at such an emotional
ly difficult time," Johnson said
"There isn't much that I won't
consider doing as long as it helps
to relieve some of the emotional
burdens."
Johnson's initial introduction into
funeral service was actually by
way of his growth in. his family's
funeral business. "Quite simply. I
was born into it. My family oper
ated a funeral home here in
Winston-Salem for over 14 years
and they have operated a facility
in Reidsville for the last 35 years."
"This is certainly not new to me,"
Johnson added.
Johnson is also a Winston
Salem native. He attended public
schools in Reidsville before pursu
ing and obtaining a marketing
degree from Howard University.
Upon graduation from Howard.
Johnson completed his appren
ticeship in funeral directing before
heading off to Gupton-Jones
College of Mortuary Science in
Atlanta. While in mortuary school
Johnson co-founded and operated
a convalescent transportation
business.
"One of the best experiences in
my life," Johnson said. "That busi
ness gave me the opportunity to
run my own show, so to speak. It
was an invaluable experience, to
say the least." After completion of
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Gupton-Jones College with a
degree in funeral service. Johnson
returned to North Carolina to
manage his family's Winston
Salem funeral facility. Collectively,
Johnson brings over 20 years expe
rience to Hooper's.
Professionally. Johnson is a
North Carolina Funeral Service
licensee and is affiliated with both
the North Carolina and the
National Funeral Directors &
Morticians Associations. He is a
member of First Baptist Church
and the Omega Psi Phi Fraternity.
Johnson and his wife. Michelle,
have two children. Jessica and
Jonathan.
Thomas Hooper III, president
and owner of Hooper Funeral
Home, said, "I am excited to have
Grantheum lead our staff. He is
an excellent director, who will give
the highest quality service to our
families."
"Hooper Funeral Home is
undoubtedly one of the most pro- r
fessionally operated funeral estab- I
lishments anywhere in the i
industry. There is a long-standing
history of integrity, friendliness,
and humility displayed through
the service of Hooper Funeral
Home, and I am extremely thrilled
to be a part of that. I want the
Winston-Salem community to be
assured that the Hooper Funeral
Home staff remains committed to
the same ideas set forth by Mr.
and Mrs. Tom Hooper Jr. over 50
years ago. We are simply striving
to be the funeral establishment for
everyone."
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ACROSS the CREEK
Qranthsum Johnson
$2.2 million T-shirt contract
j highlights Minority Supplier
Development Council meeting
During the recent National
Minority Supplier Development
Council (NMSDC) conference at
. the New York Hilton and Towers,
! "the goal," according to NMSDC
; President Harriet Michel, was "to
< bring corporations and minority
entrepreneurs together to do busi
; ness with eaci. other."
It worked admirably for
AFAM Knitting Inc., and for
Philip Morris Companies Inc.
Among the more than 4,000
business leaders who attended the
three-day conference, considerable
! interest focused on AFAM's $2.2
;? million sale of pocket T-shirts to
Philip Morris for its Marlboro
! Unlimited Catalog. Corporate
! purchasers comparing notes dur
j ing a conference reception at
Philip Morris headquarters,
describe AFAM as an "ideal sup
| plicr." vFAM's owners call their
1 , ,i "the nation's premier manu
i lacturing source for knitted gar
ments."
AFAM Knitting Inc., a textile
spinning, knitting, dyeing and fin
I ishing firm th^t also manufactures
garments, employs 175 people.
Chairman and CEO Charles
Elion, who also serves as vice pres
ident of the tri-state chapter of the
National Football League Players
Association, boasts 20 years as an
account manager for a major tex
tile firm.
Gregory George, AFAM presi
dent and cnief financial officer, is
a graduate of the Massachusetts
Institute of Technology Sloan
School of Management: His 18
year business career includes plan
ning, budgeting, financial analysis,
forecasting and cash management.
One of the first major
American corporations to support
minority vendors, Philip Morris
maintains that its supplier diversi
ty program is good for the compa- !
ny. for vendors and for the nation.
Just last year, the company pur- I
chased $743 million in goods and j
services from minority vendors. |
and has spent more than $4 billion
since 1963.
Philip Morris Companies Inc.
has five principal operating com
panies: Kraft Foods Inc., Miller
Brewing Company, Philip Morris
U.S.A., Philip Morris
International Inc., and Philip
Morris Capital Corporation.
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Ij
Mutual Credit Union
Where Your Dollars Make More Cents
"Your Community Credit Union"
? Savings Accounts
? Direct Deposit
? Christmas Club
? Personal Loans
? New and Used Cars
? Mortgage Loans
?CDs
Stop by or call TODAYI
1225 E 5th Street W
724-9081
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Please join us for
AN OPEN HOUSE
on Saturday, January 3,1998
2:00 - 5:00 p.m.
at the offices of
Dr. H. Hamilton Allen, Sr.
General Surgery
and
Dr. Harvey H. Allen, Jr.
Internal Medicine and Gastroenterology
Twin City Medical Building
501 North Cleveland Avenue
Winston-Salem, North Carolina 27101
Snow date - January 10, 199H
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BUSINESS BANKING
Sam Solomon, President -
Bull Creek Corporation
i
Six families in
Franklin County had a
bold vision: they've turned
their tobacco fields into a
golf course. Before they
went to First Citizens for
financing, they had
completed a fourth of the
project themselves.
"We picked up rocks,
we cut bushes, "we worked
on the tractors," explains
Sam Solomon/president of
Bull Creek Corporation.
"We get out there and we
grab the shovel."
i When loan officers
I from First Citizens saw
1 first hand the sweat equity
the families had put into
| their vision, they were
impressed. "First Citizens
, was very receptive to us
when we went to them,"
says Solomon.
?HIm
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At First Citizens, we
believe that investing in
our community is good
business. For everyone
Call First Citizens at
1-888^C DIRECT. We can
make it happen
g?v1
? rrst
Citizens
bank
http://www.firstcitizens.com/
\bur financial resourca Just around the corner.
? o Mmibr> FDIC <?
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