Newspapers / The Charlotte Post (Charlotte, … / March 3, 1988, edition 1 / Page 9
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For Your Tax Information Thursday, March 3. 1987 - THE CHARLOTTE POST - Page 9A Employee Business Expenses Federal Tax Return Processing Steps Truckloads o» tax returns arrive lor processing at j each o» it>e ten iRS Serv.ce Centers natoownde The service centers received 178 million tax returns m 1986 Returns arnvirsg m the coded envelopes from tax packages are processed taster which may speed up refur>d processing The coding aikms iRS to use *ts eiectroTHC mail processirxg sysiem to sort envekipes Dy type ot return and identity which envelopes contain checks Optical Character Recognuon lOCR) equipment scans certam 'eti^ns ^ such as Fpris tCMOEZ The OCR scanner reads information n entered directly Transcribers enter mtormalion from the letums mto the computer Theo input is ventied and I '^ax examiners review I returns containing errors correct them and then enter the corrected information directly into the computer then placed on magnetic tape tor further processing Returns with the peel oM label from tax packages are much easier to mput and transcription errors are less likely to be made These labels help up 'elund processing Returns are put m blocks of 100 and then each return 15 given a uoiQue document locator number The document numbers enable IRS employees to locate the returns no matie' where they are Within the processing workflow Employees make Sure 'eturns which are not optically scanned contain the required Signatures are fified-m and have all forms attached Returns which are not complete will be held from furiher processing while taxpayers are contacted lo provide the missmg information Employees then code me completed returns for further processing a Once all the mlormaiion on the magnetic tape is determined to be correct workers send the tapes to the National Computer Center (NCC) m Martmsburg West Virginia for final "Tto^ processing pnTi NCC J ;ii( NCC generates tapes containing refund information These refund tapes are sent to disbursing centers throughout the country where refund checks are printed and mailed Taxpayers who itemize deductions may be able to deduct work-relaied ex penses such as dues paid to profes sional societies, employment agency fees, medical examinations required by an employer, subscriptions to profes sional journals, union dues, and cer tain work clothes and uniforms. These are generally claimed as miscellaneous deductions on Schedule A of Form 1040. However, beginning in 1987, they are deductible only to the extent the total exceeds two percent of ad justed gross income. fbarolina Check Cashers, Inc Announcing 2nd Location! 2023 Beatties Ford Rd. & 1308-DThe Plaza (At Central Ave. and The Plaza) FREE Money Orders At This Location HOURS: Mon,-Sat, 9am-7pm All Government Checks Payroll checks Insurance Checks FREE Money Orders With Check Cashed Small Fee On Checks Cashed Phone Payment Center > I Child and Dependent Care Credit Can Aid Working Parents I* r' ii Parents who pay someone to care for a child or dependent while they work or look for work may qualify for u special lax credit, the Iniernal Revenue Service says. This C hild and Dependent Care Credit may be taken not only for payments lo babysitters and day-care ccnlcrs bul also to ceriain relatives paid for this service. This credit is available lo married couples who both work pan-lime or 'full-time or aie aclivcK looking for work, and file joinllv. If one spouse works full-time and the other works parl-tinic. is a full-time siudent or is disabled, he or she is also eligible for the credii, according to the IKS. The ercdil may also apply to a divorced or separaleci paiem who has custody ol a child who is under LS or physically or menially incapable of self-care, even though llie pareni mav not be emiiled lo a dependency esemp- lioii for the child. Ihe paicnl claiming ihc credit musl, however, liavecuslodv for a longer perivid during the veai I hail I lie othei pareni. mairied pei- soii living aparl from hiv oi her spouse lor Ihe Iasi six monihs of ilie taxable year is eligible for ilie credii if a separale rePiiii is liled. dependent’s care was incurred, and (2) must have paid over half the cost of maintaining his or her household, which included one or more qualifying individuals. A qualifying individual is a dependent child under 15 years of age or a spouse or dependent who is men tally or physically incapable of self- How to Claim To claim the credit, taxpayers can file Form I040A, using the worksheet in ihe Torm I040A tax package lo eompule ihe amount of Ihe credii. faxpayers who file Form 1040 may also claim the credit, even if they do not ilemi/e deductions. These tax payers eompule ihc credit on Form 2441, Credii for Child and Dependem Cure Lxpensea, and attach lliis form to Ihe Form 1040. ■Addilional informaiion is available 111 IRS I’ublicalion 50.5, Child and DependeiU Can- Credii, and timploy- ineiu faxes /or Household l-.in/>loyers, which mav be ordered by filling out the order blank in ihe lax package or by calling l-K(K)-424-5676. I’ereenlage \ aries !»■ I he credii is Inim 20 lo 50 perceni ol eligible expenses, depeiidmg on ihe laxpayer's adiusied gioss income. Ihc maximum ciedil ihal mav he lakeii is limiled U) S720 lot one cpialilving pci son and lo SI.440 loi Iwn oi mine qualifvmg peisoii'-. lo qualdv loi ilic t hild and Dcpcii dciii t aic I 'lcdli, a laxpavci II) iiupi have been g.imUilIv cmi'lovcd or in ac tive vc.iuli ol eamliil cmplovmcnl when I lie cvpciivc loi the ^liiklS oi Moonlighting Those people who work at two places in a day may claim the expense of traveling between the places of employment. More information is con tained in the free IRS Publication 917, “Business Use of a Car,” available by writing or calling Ihe IRS. Educational Expenses Work-related educational expenses may be deductible. Generally, to claim a deduction for most qualifying work- related educational expenses, a Form 2106, “Employee Business Expenses,” must be completed and attached to the Form 1040. Only those educational ex penses reimbursed by an employer and reported on Form W-2 or a Form 1099 may be deducted as an adjustment to gross income. Any expenses in excess of such reimbursed amounts generally may be claimed as a miscellaneous deduction on Schedule A (Form 1040). However, miscellaneous deductions are deductible only to the extent the total exceeds two percent of adjusted gross income. More information can be found in the free IRS Publication 508, “Educational Expenses,” available by writing or calling the IRS. Double-Check Return—Avoid Processing Delays To those expecting a tax refund this year, the Internal Revenue Service says a quick check for accuracy can help avoid mistakes which might slow tax return processing. Carefully prepared, easy-to-read returns can be processed faster, the IRS advises. Once the return is completed, the IRS suggests that tax payers consult the following check list: Have you attached all your Forms W-2, Wage and Tax Statementsi Have you attached all the supporting schedules to your Form 1040? ' Are your name and social security number on each schedule? Are the names and .social security numbers of dependents five years or over on your return? • Is your arithmetic correct? • Are all of your entries on the proper lines? If you rounded off your numbers, did you round off consistently? Is your handwriting legible? When you used the Tax Table, did you follow the line across to the cor rect column for your filing status? Did you sign and date your return? Remember, if it’s a joint return, your spouse musl sign too. Did you use Ihe peel-off label, and is the informaiion on the label correct? Have you made necessary correc tions right on the peel-off label? Have you retained a copy of your return for your records? Did you remember lo put the correct postage on the pre-addressed envelope? If the return has several attachments, additional postage may be required. Did you make a copy of your return for your files? : Two Jobs in 1987? Check Social Security Withheld Those who worked for two or more employers during 1987 and received wages totaling more than $45,800 should check to see if they arc entitled lo a credii for excess social security tax withheld, according lo the Internal Revenue Service. Social security tax withheld in excess of $5,151.70 can be applied as a credii against income tax only if the in dividual had more than one employer. IRS notes that those who file joint returns may not add the social security lax withheld from one spouse’s income to the amount withheld from the other spouse to determine the credit. The credit must be figured separately for each spouse. Workers who had only one employer and had more than $5,151.70 withheld may not claim the excess as a credit against iheir income lax. The employer should adjust thjs over-collection, the IRS explains. 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Our accountants are always abreast of any change in the tax system, and can use their knowledge to your benefit. fLCCOUCMTl^g df TfUC STtlCTlCT Since 19 S5 Accoimting & Consulting Individual & Corporate Tax Service 1916 Commonwealth 375”2715 Use Your 1987 Tax Return To Refurnish Your Home Charming Colonial comfort is now yours in lastingly beautiful 1(X)% ANTRON* NYLON ,at an incredible value! 3-cushlon sofa 3 PIECE SUITE $669.00 The look is Early American, but the value Is up-to-datel This pleasing group Is authentically styled with winged backs, thickly padded arms and plush cushions. Durable Antron* nylon fabric keeps on looking lovely. Accented with rich woodtone and box-pleat skirting. Matching loveseat, 225.00. companion lounge chair, 112.00 BAD CREDIT-GOOD CREDIT-MAKES NO DIFFERENCE WE HAVE A PLAN FOR YOU Free Parking-Free Delivery (within 50 miles)-Quick, Easy Terms FURNITURE CO. ?/Charlotte. Iqc. 3400 WILKINSON BLVD. PHONE 392-2381 CLOSED ON WEDNESDAY AFTERNOON AT 1 p.m.
The Charlotte Post (Charlotte, N.C.)
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March 3, 1988, edition 1
9
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