TAX DAY 1999: THINGS YOU NEED

This "Financial Focus" column is prepared by Edward Jones Investments, headquartered in St. Louis. Jones includes branches throughout the nation, including Cape Girardeau and Jackson.

The clock is ticking. Are you ready for tax day, April 15, 1999? Here are a few ideas to help you prepare:

Gather your records. Items that you need to prepare your tax return may include:

-- last year's tax return;

-- W-2 forms;

-- 1099 forms;

-- papers relating to the purchase, sale or financing of property;

-- cost basis information for investments you sold;

-- records of child and dependent care expenses; and

-- statements and receipts for deductible items, such as mortgage interest; state, local and property taxes paid in 1998 (including estimated state taxes); medical and dental expenses; charitable donations; job expenses; and tax preparation fees.

You'll also need your tax forms: your 1040 and any other necessary schedules and forms. If you did not receive all of them in the mail, you can obtain tax forms from your local library, or call the IRS at (800) 829-3676.

Make your IRA contribution. If you haven't made a contribution for 1998 yet, you have until April 15 to do so. When it comes to saving for retirement, the IRA is one of the best deals going.

Any working American can contribute up to $2,000 a year to a traditional IRA, and for many people, that contribution is deductible from today's taxes. Your investment grows tax-free until you withdraw it, allowing your nest egg to grow larger than it could if you invested in something taxable. Any withdrawals before age 59-1/2, however, are subject to a 10 percent penalty unless they're made due to death, disability, qualified college expenses or a first-home purchase (up to $10,000).~~

People earning less than $95,000 ($150,000 for couples) can contribute $2,000 a year ($4,000 for couples) to a Roth IRA. Contributions are not tax deductible, but they grow tax-free, and you can make tax-free distributions after the assets have been in the account five years and as long as the distribution is for a qualified purpose (see previous paragraph) or after age 59-1/2.

You can have either or both types of IRAs, but the total contribution per person cannot exceed $2,000 a year.

Consult your tax adviser about tax law changes. The Taxpayer Relief Act of 1997 (TRA '97) established a number of changes, including education IRAs, expanded deductibility of traditional IRAs, lower capital gains taxes and more. Many of these new regulations took effect in 1998. Also in 1998, Congress passed new legislation clarifying some of the provisions of TRA '97. Be sure to consult your tax professional to determine how the new laws may affect you.

Now is the time to get ready for tax day '99. No one looks forward to tax time, but a little preparation today can make April 15 a lot more pleasant.

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.