Previously presented "Tax Tips" may be found here.

REFUNDS

A refund claim must be filed within three years of the filing of the return for the year OR within two years of the date the tax was paid, whichever is later. If no return is filed, then the refund claim must be filed within two years of the date the tax was paid. This rule is usually followed with few exceptions. An amended return filed for an additional refund follows this rule.

 

EARNED INCOME CREDIT.

For those who qualify, it is a must that names and social security numbers must be proved and match. New IRS guidance, in a legal memorandum, says the listing of a SSN is a requirement for claiming the credit, not an eligibility requirement. If one qualifies for an EIC, and the numbers do not match, the EIC will be denied until corrected.

 

SOCIAL SECURITY BENEFITS

The earnings test for folks between the ages of 65-69 has been repealed. Now that the test is gone benefits will not be reduced. There is no need to delay filing for benefits when eligible. The earnings limit remains for those folks aged 62-64 at $10,080 a year.

 

ONE-YEAR TREASURY BILLS

If you like this type of investment, the Treasury will discontinue issuing these notes at the end of this year. The three and six months bills will continue to be issued. You can buy the on-year bill until the end of this year. When the Treasury will decide to reissue one-year notes is not known.

 

OF VERMONT INTEREST

The legislature has increased the Vermont Earned Income Credit from 25 percent to 32 percent.

 

No tax increases were passed in this last legislative session. In fact, the income tax has been reduced from 25 percent to 24 percent beginning January 1, 2000.

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Plainfield, VT 05667
Phone (802) 454-1674
FAX (802) 454-1927
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