The State Port Pilot
Business
Money Management
Avoiding tax
filing errors
Mistakes on your tax return can result in processing delays, costly penal
ties and even unwanted Internal Revenue Service (IRS) inquiries. That's
why it's important to review your tax return thoroughly.
Don't know where to begin? Here's a checklist of items the North
Carolina Association of CPAs suggests you review before mailing your
return. Take the time to check it twice, and you may avoid some of the
mistakes hundreds of taxpayers make every year.
1. Use correct Social Security numbers. It’s easy to transpose numbers Or
leave one out altogether. That's why you should make sure you list the cor
rect Social Security numbers for you, your spouse and your dependents, as
well as your child-care provider if you are claiming the dependent care
credit. Incorrect numbers may prompt inquiries by the IRS.
2. Check the tax tables and your filing status. Using the wrong table
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filing status is single, married filing jointly, married filing separately or
head of household. Then be sure you refer to the correct tax table.
3. Make sure all 1099 forms are correct. These forms are provided by
institutions or individuals who pay you interest, dividends and freelance
income, etc. Check the forms for accuracy and be sure they correspond
with amounts listed on your tax return. If there are any inconsistencies, it’s
your responsibility to resolve them, preferably before you submit your
return.
4. Check all withholding statements. Make sure you have received W-2
withholding statements from those who provided you with employment
income and that the statements are accurate. If they are not, ask your
employer or other payer for a corrected copy.
5. Get credit for your tax withholdings and estimated payments. All tax
withholdings and estimated payments should be correctly entered on your
return so they can be credited against your tax liability. Otherwise, you risk
overpaying your tax bill.
6. Determine taxable Social Security benefits. Make sure that in calculat
ing the amount of taxable Social Security benefits you use the base
amounts applicable to your filing status.
7. Claim the right number of dependent exemptions. Here's an opportuni
ty to save money that many people overlook. You may claim a dependent
exemption of up to $2,650 for children, parents and other dependents
whom you support, provided you are not subject to the phase-out of
exemptions for high-income taxpayers. Generally, you must provide more
than 50 percent of the support for the dependent, and the dependent must
have 1997 gross income of less than $2,650. This gross-income rule does
not apply if the dependent is your child and either is under age 19 or is a
full-time student under age 24. If you are divorced, make sure you and
your ex-spouse agree who can claim the dependency exemption for your
child. Generally, the parent who has custody of the child for the greater
part of the year is entitled to claim the exemption. ‘
8. Report all non-deductible IRA contributions. If you made a non
deductible Individual Retirement Account (IRA) contribution for 1997, be
sure to fill out Form 8606 and attach it to your return.
9. Don't overlook the earned income credit. The earned income credit,
which can directly reduce your taxes, is frequently overlooked by qualified
taxpayers. Generally, you may claim the credit on your 1997 return if you
had earned income and you fall, into certain low-income categories. You
can have the IRS calculate the credit for you by checking the appropriate
box on your tax return.
10. Check all your math. Make sure there are no math errors in comput
ing any tax balance that is due or refund owed you.
11. Attach proper documentation. You should have received your W-2
form from your employer earlier this year. Be sure this form which lists
your annual wages and the amount of taxes paid during the year is attached
to your tax return, along with other relevant forms. Also, check that the
forms are attached in the proper order. Form 1040 should always be on
top. Put the rest of the forms in the order of the attachment sequence num
bers, which are generally listed in the top right-hand comer of each form.
Behind those come any other statements or other unofficial documents you
submit.
12. Be sure you sign your return. Unsigned returns will be returned to
you and may be treated as if they have never been filed. As a result, you
could be assessed a late-filing penalty and have your refund delayed.
Finally, if after filing your return you have a problem that can't be resolved
through normal channels, you may contact the IRS Problem Resolution
Office located in your district.
Money Management is a weekly column on personal finance prepared
and distributed by the North Carolina Association of Certified Public
Accountants.
Investment Services
Richard T. Motley
First Vice President, Investments _■
4H DEAN WITTER
Charlotte, NC 28222 . .
(910)467-0278 (800)7864)006
©1992 Den Witter Reynold. Inc. Member SIPC
r
The grand opening of Southport Antiques was attended by (left t<
right) Lois Gable, senior vice-president of the Southport-Oak Islanc
Chamber of Commerce; Southport mayor Bill Crowe; Briar
Hennessey; Bobbie Hennessey, owner.
Web surfers beware
Internet plans
may be rip-off
Ads promising big money from
Internet-related business opportuni
ties. You’ve seen them on TV, in
newspapers and even in your e-mail.
Everyday, people make money
using the Internet and the commer
cial possibilities seem endless.
Unfortunately, every entrepreneur
who buys into an Internet "opportu
nity" doesn't automatically find a
pot of gold at the end of the digital
rainbow.
Scam artists are cashing in on the
Internet's potential by selling fraud-,
ulent Internet-related business
opportunities. They say you cat)*
earn thousands of dollars selling
machines that enable television
access to the Internet or selling
kiosks that provide walk-up access
to the Internet. Or, they claim they
can train you to be a high-paid
"Internet consultant."
Many of these scams are targeted
to individuals who are not techno
logically savvy. Indeed, many pitch
es seem designed to take advantage
of an entrepreneur's "Internet inno
cence." Don’t let them fool you.
The Federal Trade Commission
urges you to investigate Internet
related business opportunities as
carefully as you would check out
any business opportunity. Before
you invest or buy into any business
opportunity:
■ Realize that seminar "trainers"
McDonald’s
honor noted
u ii u g a ii y
Graham has been
named McDon
ald’s employee
of the month for
March.
' Graham, who
has worked at
McDonald’s of
Southport for a GRAHAM
tear, is a junior at South Brunswick
High School and a member of
JROTC.
Over lbu strong ... ~
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SPACE AVAILABLE FOR YOUR BUSINESS
Shared Services • Shared Equipment
Accessible Training • On-Site Management
Competitive Rent • Space Choices
WHERE: Winnabow Business Development Center
J 6339 Ocean Highway, East (adjacent to the Winnabow Post Office)
WHEN: Immediate Openings
HOW: Call Facility Administrator at (910) 253-308? or
Brunswick County Economic Development at (910) 253-4439
BUSINESS DEVELOPMENT CENTER
or "consultants" often are there to
sell you a business opportunity, not
teach you Internet basics. In fact,
they may be counting on your lack
of experience with computers or the
Internet.
H Demand to see the company's
claims in writing. In fact, get all
promises in writing. . .
■ Keep your eyes and ears open
for "shills" or phony references.
Don't accept a list of references
selected by the company that offers
the business opportunity as a substi
tute for a complete list of franchise
or business opportunity owners.
■ Ask for a disclosure document
if you are interested in a franchise.
This document is required by law. It
should provide detailed information
to help you compare one business to
another. Be skeptical of companies
that do not have disclosure docu
ments.
Chamber hosts
‘Spring Cruise’
Business owners and their support
staff are invited to attend a “stress
buster spring cruise” sponsored by
the Southport-Oak Island Chamber
of Commerce on Tuesday, April 21.
The group will board the Royal
Queen at the Southport Marina
between 11:30 a.m. and noon, leave
at noon and return by 2 p.m. The
cost is $20 per person, which
includes a deli buffet and dessert
bar, door prizes and a two-hour
cruise on the Intracoastal Waterway
and Cape Fear River.
The registration deadline is April
14. For further information, persons
may call the Southport-Oak Island
Chamber of Commerce at 457
6964.
Southport-Oak Island
By Karen Sphar
Executive Vice-President
(A report of activities of the
Southport-Oak Island Chamber oj
Commerce published each week in
The State Port Pilot.)
Congratulations to Bobbie and
Brian Hennessey on the opening of
Southport Antiques, 101 South
Howe Street, Southport (above
Cape Fear Jewelers).
The U. S. Open King Mackerel
' Tournament Board of Directors
1 hosted a party at the Oak Island Golf
1 . .and Country Club to show its appre
ciation to the 1997 sponsors and
volunteers. D. V. Jones Jr. was head
chef, with assistance from Don
Hughes of BEMC and Bill Owens.
Contributing to the menu was the
legendary cole slaw of Jones’
Seafood House and oh-so-yummy
banana pudding of Lucky Fisher
man Restaurant.
This party also kicked-off the
1998 U. S. Open King Mackerel
Tournament sponsorship and bro
chure ad sales drive. Stephanna
Tewey of Blue Dolphin Business
Center/Sea Way Printing and mem
bers of the Southport-Oak Island
Jaycees will be out in the communi
ty selling ads in the brochure. Kim
Skipper of Art Skipper Realty Inc.
will be securing sponsorships. If
you are interested in any of these
great opportunities, please call the
chamber at 457-6964.
This Saturday, the chamber will be
.participating in the Robert Ruark ,
Chili Cookoff in Franklin Square
Park, Southport. The event includes
chili sampling, arts and crafts, enter
tainment and a good time. We hope
to see you there.
Century 21
recognizes
sales agent
Lynda Haraway of Century 21
Dorothy Essey and Associates Inc.
is recipient of the Gold Medallion
Awara, one ot
the highest lev
els of recogni
tion awarded to
top-producing
sales associates
in the Century
21 system.
Mrs. Haraway .
received the HARAWAY
1997 top-listing agent and most
valuable agent awards from the
Long Beach office of Century 21
Dorothy Essey and Associates Inc.
These awards were in recognition of
her “outstanding service to her cus
tomers resulting in sales of over four
million dollars for the year,” it was
noted.
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