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Publication: European Stars and Stripes Wednesday, January 30, 1991

You are currently viewing page 32 of: European Stars and Stripes Wednesday, January 30, 1991

    European Stars and Stripes (Newspaper) - January 30, 1991, Darmstadt, Hesse                                Desert storm poses filing problems by Randy Mcclain financial writer a Quot military personnel deployed in inc persian cult and heir families Are being Given several months longer than Normal  1990 income , but that May not solve All the problems of paying taxes while the world is at War. Quot there May be communication problems Between a spouses less time to handle lax returns and stress. Being overseas scatters Access to information in Normal times and the deployment is scattering things a Little bit further Quot said John k. Martensen chief of the v corps Legal assistance office in Frankfurt. Germany. ,. A there Are no major i Lerna Revenue service Rule. Changes or tax Law revisions to worry about hut the fact that families Are separated is a major concern. Private tax preparers and some  advisers. In Europe Are warning that this tax season will be. Much delayed because of operation desert storm. V Quot february and March Are typically our busiest months but i look for tax season to come later this. Year a Martensen said. A. A Quot one reason of course is because president Bush has Given service members in the Middle East a lot a More time to get their  in order this year. Bush said last week that service members civilian employees and contractors in the Middle East wifi be a v Given at least until 180 Days after their return froma the persian Gulf combat zone to file returns. The. A measure applies to spouses too Vav either filing jointly. Or separately. A v. Quot a. Congress quickly followed up by specifying that. There would be no penalty or interest assessed because of the delay and also ordered the irs to suspend any collection or enforcement actions a a against deployed personnel. A further Congress ordered the irs to pay interest starting april 15, on any refund due combat soldiers a. Evert though they May not have filed for it. ,. Wounded troops will not have to file As Long a they Are hospitalized but no longer than five years after their return to the United states. V none of these extensions preclude anyone front. Filing Early and Many May want to do so. -. \ in Bonn Germany i is officials acknowledged. A a there May be a few glitches in military returns but. They re not counting on major problems. In most cases the irs said taxpayers due a refund try to file Early and that s expected to happen again this year. A. In thousands of cases . Soldiers gave Powers of attorney to spouses friends and relatives before. Shipping out for the persian Gulf and that should. Help Speed a Large number of  and refund checks where owed on their Way the irs said. . Mcdonald an a amp a Block franchise owner in a a Wiesbaden Germany said matters May be helped. By the fact that the majority of american military personnel Dnn t have complicated returns. Mcdonald s advice Quot file if you re ready. But. Don t Rush your return. It s better to get All your facts a a and data together than to make a  a failure to report All income can also Lead to irs. Penalties Martensen said. Quot a hastily prepared return does t do you any . A a a. A Power of attorney that specifically authorizes. Someone to prepare execute and sign a tax return a including joint returns on a service member s behalf w ill routinely be honoured by the irs. Irs form 2848 also can be used for that purpose. Indie diadem the military Legal attain Soflin e is running behind last years Pace in signing up Volunteer who go through a two Day training  anti serve As tax advisers Tor others in the Community. By mid january Only 45 of an schedules and forms from a to z the search for simplicity is leading More and More taxpayers to tile the single Page form 1040ez. That is not a Wise Choice for Many taxpayers who could save Money by filing form 1040a or the Long form 1040. Here Are the Basic rules ,. 1040ez Only for single taxpayers who Are neither Blind nor past their 65th birthday and. Had taxable income after subtracting the. Standard deduction and the $2,050 exemption of less than $50,000. All the income except up to $400 of interest must have been from wages tips or taxable scholarships. 1040a for any filing status same income ceiling As 1040ez except you May include interest and dividends up to the $50,000 limit and unemployment compensation. You May use 1040a and still claim an individual retirement , the child Caro credit or the a earned income credit. A. 1040 any taxpayer May use it. A there Are no supplemental forms and schedules for 1040ez. The 1040a uses Only schedule 1, for interest dividends and the child care credit. Here Are some of the most widely used forms and schedules to accompany 1040. If they Are not included in you tax instructions they probably Are available from unit tax advisers or military Community Legal assistance office Sita schedule a to report profit or loss from your  Tor capita Gams and losses. Schedule a for rent royalties and partnership income and expenses. Schedule of for farm income and expenses. A a. R. A scheduler for claiming the credit for elderly or disabled. J schedule be to calculate social Security self employment tax. Form 2106, for employee business expenses. A form 2119, to report the Sale of your Home. A. ,. A form 3903, for Job related moving expenses. Form 4868, to get an automatic four month Extension for time to file your return but not to. A pay any tax owed. A a. A a  8283, to list non Cash charitable contributions that total  $500. Form 8606, to report non deductible contributions to an. Ira and to calculate what . Any Ira withdrawal is taxable. A a a a a a a a form 8615, for calculating the Quot kiddie tax on children under age 14 with investment income. Of More than $1,000. A. . V a Ltd a i a. A. A. Sols  Harris anticipated 70 Volunteer slots had been filled said sgt. 1st class Carl Orr of Wiesbaden s Legal office. He said service members spouses and civilians Are being recruited to fill the remaining slots. Military personnel in saudi Arabia weren t. Surprised that president Bush decided to give them. More time to file taxes especially since fighting broke out earlier this month. A a a a a a a a a. Air Force capt. Steven l Miller stall judge advocate for the 401  fighter Wing deployed. In Qatar said it w Duld have been ridiculous for Theta credit eludes by Chuck Vinch Washington Bureau o Nee again it s Quot Wail until next year Quot for. Lower income military families who could qualify for a sizable lax break if they St Iii lived in the states. A a. The 101 St Congress adjourned late last year a without amending the internal Revenue service code that established the earned income credit. The program is intended to give lower income. W orking families a tax break Nup to $ 1,600 a year. But the Cotie applies Only to taxpayers who a maintain a Home in the United state s for a i Iii living with them for More than half the year said cmdr. Pat a Kuziak of the Pentagon compensation . Military a personnel accompanied by their children overseas Don t meet that main requirement. Tie estimates that there May be As Many As 25,000. Service members overseas nut in grades e-5 and. Below who otherwise would qualify for the credit. No foreign income is allowed and the taxpayer must file either a married joint return As head of the. A household or As a qualified widower. Irs to expect anyone to do their taxes while in the desert. Quot did t happen to bring my tax records with me Quot he said. A a. A one airman who was sent to the  Comiso As Italy had a novel tax season idea that the irs might have considered if the president had t decreed that defeating Iraq has higher priority than collecting taxes. A. A Quot Ionly pay $ i 00 in taxes a yeat,1 said 14-year-old 1 Elt h. Sgt. Mark Myers shortly before War broke out., Quot let pm come after  it a military families to qualify for the maximum tax break  erne cannot exceed $11,250. Anyone earning a More than $21,245 can t claim the c Redit at All. Quot very few overseas service members if any would get the maximum credit Quot Kuziak said Quot most would probably be in the $50-to-$7u0  ,. The earned income credit is linked to the number of children in the family As Well As irv ome. With one child,.a family Cai gel a break of up to $ 1,192, while fur two Rhind Poiror More the maximum is $1,25 5. The lax a ode also has a Quot Young child Quot clause that. Allows up to an additional $ i 57 in tax Breaks if a. Family Lias a child born during the lax year that they Are filing for. A. Kuziak  the earned  credit to a overseas Servi it it members remains a  will definitely resubmit Bias part of our legislative. Program for the next budget Yate Quot lie said. A if lawmakers Amend the code this year overseas server a members Ould claim the i red it for 1991. Quot we have no indication that anyone  thinks this is a had idea Quot Kun Ink said. Quot our apr it Eption is Hal Fiey got too Busy with Ion Many Oiler filings last . A Edne Saay january 30, 1991 a amps financial planning guide aaa  
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