
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, February 27, 1995                   TAG: 9502280001
SECTION: MONEY                    PAGE: 6   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

TAX FORMS, WHAT'S NEW?

The Internal Revenue Service will send more than 109 million income tax packages and postcards this year. The printing bill for the tax packages is $17.9 million, with postage costing another $19.7 million: an average cost of 34.4 cents for each package. Additional forms and publications are available by calling 1-800- 829-3676, Monday through Saturday.

Form 1040EZ Filers Can Claim Earned Income Tax Credit (EITC): As part of IRS' continuing effort to simplify forms, taxpayers who file the easiest tax form, the 1040EZ, can use this form to claim the EITC. The IRS expects approximately 2.6 million EZ filers to claim the EITC. Last year about 800,000 couples with taxable incomes under $50,000 and without dependents used the EZ form for the first time. In the past, only single persons could use this form.

Schedule EIC Not Required For Many Claiming EITC: Those who claim EITC use this schedule to provide information on a qualifying child. Previously, taxpayers also used this schedule to compute the credit. Childless workers-who can claim the credit for the first time-will not need to complete this form. The schedule is now only six lines compared to 20 last year. There are simplified worksheets in the tax instructions for those who want to figure the credit themselves rather than have IRS figure the credit.

Separate Line For Capital Gain Distributions Eliminated: About 3.2 million taxpayers will no longer enter capital gain distributions on a separate line on Form 1040. Taxpayers who do not need to file Schedule D will report those distributions on line 13 and write "CGD" on the dotted line next to line 13.

Employees With Unreimbursed Business Expenses Can Use Simplified Form 2106-EZ : An estimated 3 million employees deducting job expenses where they were not reimbursed by their employer may be able to use this simplified form. If claiming vehicle expenses employees must own the vehicle and claim the standard mileage rate for 1994 and for the first year the vehicle was placed in service. It's only 12 lines long.

Changes On Itemized Deductions Form: There are new lines on Schedule A, Form 1040, for entering amounts paid for personal property taxes and tax preparation fees. Previously, taxpayers had to write in these types of expenses. About one-third of those who file Schedule A, approximately 10 million, use each of these lines. Other changes to Schedule A include reminders that the law now requires additional substantiation for charitable gifts of $250 or more.

Moving Expenses Are Now Direct Adjustment: In addition to other law changes affecting moving expenses, deductible moving expenses incurred after 1993 are now taken as an adjustment to income on line 24 of Form 1040. Expenses incurred before 1994 are deducted on line 27 of Schedule A, Itemized Deductions.

by CNB