 |
Most importantly, check your math.
|
|
Double-check
that your social security number has been correctly written on the return.
|
|
Include
your social security number on each page of the return so that, if a page is misplaced by
the IRS, it can be reattached.
|
|
Check
that you have claimed all of your dependents, such as elderly parents who may not live
with you.
|
|
Include
on the return the social security numbers for all dependents who were born on or after
November 30, 1996.
|
|
If you
are single and have a dependent who lives with you, check to see if you qualify for the
lower tax rates available to a head of household or surviving spouse with a dependent
child.
|
|
You
may be eligible for the earned income credit if you do NOT file as married filing
separately. If you have one qualifying child and your earned income and modified adjusted
gross income for 1996 are less than $25,078 ($28,495 if you have more than one qualifying
child), you may qualify. If you do not have a qualifying child, but are between the ages
of 25 and 65, and your earned income for 1996 and modified adjusted gross income are less
than $9,500, you may qualify as well.
|
|
If you
are married, check to see if filing separate returns rather than a joint return is more
beneficial.
|
|
Attach
all Copy Bs of your W-2 forms to your return in order to avoid correspondence with the
IRS. If you received a Form 1099-R showing Federal income tax withheld, attach copy B of
that form as well.
|
|
You
may be able to claim the additional standard deductions if you are blind or 65 years of
age or older.
|
|
Be
sure to sign your check and write your social security number, the form number, and the
tax year on the face of any checks made out to the IRS.
|
|
Be
sure that your Form W-2 and all 1099s are correct. If they're wrong, have them corrected
as soon as possible so that the IRS's records agree with the amounts you show on your
return.
|
|
If you
worked for more than one employer, be sure to claim a credit for any overpaid social
security taxes withheld from your wages.
|
|
If you
received a state tax refund, make sure you have not included too much of your refund in
your income. State tax refunds may not be taxable if you did not get a tax benefit from
deducting them. If, for example, you used the standard deduction in the year in which the
taxes were paid, you do not have to include the refund in income this year.
|
|
Deductible
real property taxes should be distinguished from assessments paid for local benefits, such
as repair of streets, sidewalks, sewers, curbs, gutters, and other improvements that tend
to improve properties. Assessments of this type generally are not deductible.
|
|
Make
sure to sign and date your return and enter your occupation. If you are filing a joint
return, be sure that your spouse also signs as required.
|
|
Only a
portion of your social security benefits may be taxable. If your income does not exceed a
certain amount, none of it may be taxable.
|
|
Check
last year's tax return to see if there are any items that carry over to this year, such as
charitable contributions or capital losses that exceeded the amount you were previously
able to deduct.
|
|
If you
can be claimed as a dependent on someone else's return, do not claim a personal exemption
on your return. Your standard deduction may be limited as well.
|
|
Fill
out Form 8606, Nondeductible IRA Contributions, for your contributions to an IRA account,
even if you don't claim any deduction for the contribution.
|
|
Recheck
your basis in the shares you sold this year, particularly shares of a mutual fund. Income
and capital gains dividends that were automatically reinvested in the fund over the years
increase your basis in the mutual fund and thus reduce a gain or increase a loss that you
have to report. Also, any "front end" or purchase fees are still considered part
of your cost basis for tax purposes, even though they reduce your investment in a mutual
fund.
|
|
Recheck
that you have used the correct column in the Tax Rate Table or the right Tax Rate Schedule
for your filing status.
|
|
Don't
miss deadlines: December 31--set up a Keogh plan; April 15--make your IRA contribution;
April 15--file your return or request an extension.
|
|
If you
regularly get large refunds, you're having too much withheld and, in effect, giving an
interest-free loan to the IRS. Changing the number of allowances you claim on a W-4 form
will increase your take-home pay.
|
|
Keep
copies of all documents you send to the IRS. Use certified mail for all important
correspondence to the IRS. Don't forget to keep your records in good shape.
|
