Kinderhook State Bank Newsletter

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					 Kinderhook State Bank                                                                                 March 2004

   Kinderhook State Bank
                                                                          “Serving Our Community Since 1919"

                                Happy St. Patrick’s Day
      2004 Legal Holidays                      Fraudulent e-mails                     Deductions. Compare your total
           Observed                         Scams known as “Phishing”                 income (line 22 on the IRS Form
                                           Phishing is the fraudulent scheme of       1040) with your adjusted gross
 The bank will be closed these dates:                                                 income or AGI (line 35) to see if
                                           sending an e-mail to a user falsely
                                           claiming to be a legitimate company.       you’re taking advantage of some key
      May 31 - Memorial Day                                                           deductions. These include
     July 5 - Independence Day             The email attempts to con the user
                                           into surrendering private information      contributions to a tax-deductible
     September 6 - Labor Day                                                          Traditional IRA or retirement plan for
    October 11 - Columbus Day              that could later be used for identity
                                           theft. The e-mail claims that the          the self employed, such as a Keogh or
    November 11 - Veterans Day                                                        SEP.
    November 25 - Thanksgiving             individual’s personal information is
                                           necessary to assist in the fight against   Roth eligibility. Consider your
     December 25 - Christmas                                                          modified AGI (regular AGI after
                                           terrorism or for some other purpose
                                           supposedly required by law. The            adding or subtracting certain income,
       ATTENTION!!!                        website to which the email recipients      deductions and exclusions) to see if
     Worth Passing On......                are directed are often very similar to,    you’re eligible to contribute to a Roth
                                           if not actual clones of official           IRA. Your modified AGI must be less
Please keep a watch out for people         government sites.                          than $160,000 if married filing jointly
standing near you at retail stores,                                                   or $110,000 if single. While a Roth
restaurants, grocery stores, etc., who                                                contribution is not deductible,
                                           Use Your Tax Return to                     withdrawals are generally tax free if
have a cell phone in hand. With the
                                           Guide Your Investment Plan                 the account has been open at least
new camera cell phones, they can take
                                           Completing your tax return is an           five years and you have reached age
a picture of your credit card, which
                                           annual ritual that determines how          59 ½.The longer your investment
gives them your name, number, and
                                           much you owe Uncle Sam (or how             horizon, the more valuable the Roth
expiration date. Identification theft is
                                           much he owes you). But there’s more        tax break may become.
one of the fastest growing scams
                                           to a tax return than meets the eye. It     Marginal tax bracket. Determine
today, and this is just another example
                                           can provide insights as you map out        your marginal tax bracket—the
of the means that are being used.
                                           your financial planning strategy.          category that your highest earned
                                           Key tax form considerations                income falls into— to help you make
    So aware of your            Think of a tax return as a summary of      investment decisions. The Tax Rate
           surroundings.                   your financial activity for the previous   Schedules from the Internal Revenue
                                           year and a useful starting point in        Service can be used to find your tax
                                           evaluating your financial strategy         bracket regardless of income.
                                           going forward. Here are some items to
 2 Kinderhook State Bank                                                                               March 2004

Earnings. Evaluate your current             individual situation.                         Beard Implement will have some
earnings compared to previous years.        4. Source of data: Internal Revenue                 lawn tractors for display.
Are you able to save and invest more?       Service.
Your earnings can be the key to how         For more information, call
                                            Kinderhook State Banc Insurance &               West Pike/Barry Softball
much you should set aside for short
and long-term goals.
                                            Financial Services, Randy Mathews, Personal   Team will host a car wash, and Fun
                                            Benefits Specialist today at 217-432-8388.
Watch for substantial changes.                                                             activities and prizes are planned for
While reviewing all of these items may                                                                    children
                                            For Nascar Fans Everywhere!                         Saturday April 10th.
seem to be an overwhelming task, a
                                              Dale Earnhardt Jr. 2004 Daytona
good way to begin is to review your
                                                       500 Victory                                      PLUS
tax return to see if there is anything
                                                Limited Edition Photo Mint                 Hotdogs and chips will be available
significantly different from prior years.
If so, it may be a good time to set up a                                                   Mon-Fri and Cookies and Punch on
                                            This celebrates Dale Earnhardt Jr’s                        Saturday.
meeting to discuss your investment
                                            victory six years to the day after his
                                            father’s only Daytona 500 win.
1. Withdrawals from a Roth IRA may
be subject to state and local income
                                            This Photo mint measures 12" x 15"             Don’t Miss out on the
                                            and includes a 24-Karat Gold Overlay
taxes. Withdrawals before five years
                                            Coin and a Certificate of Authenticity.           Fun Activities
may be subject to federal
income taxes and withdrawals prior to                                                       here April 5-10 for
                                            There are other Limited Edition Photo
age 59 ½ to a 10% federal tax penalty.
                                            Mints available, call Kinderhook State         Community Banking
Consult your tax professional about
                                            Bank and order yours today!                           Week!
your individual
2. Example is hypothetical and for                                                        Full list of fun Activities will
illustrative purposes only. Figures do
not represent any actual investment’s                                                       be posted in the Bank.
performance or yield. You
can get a rough idea of tax-equivalent                                                    QUOTES OF THE MONTH
yield by using the following formula:                                                           Enjoy the present hour,
Divide the tax-exempt yield of an                                                               Be thankful for the past,
investment by 1 minus your                                                                     And neither fear nor wish
tax bracket. For example, if you are in       Community Banking                                Th’ approaches of the last.
the 35% tax bracket and are                                                                      By: Abraham Cowley
considering a municipal bond fund
yielding 5%, divide 5 by the result              April 4-10                                           Tax Filing
of 1 minus 0.35 (5 divided by 0.65).        It’s Community Banking Week in                Just a Reminder that the April 15th
The answer is 7.69.That means you           Illinois and “Real Community Banks”           deadline to file taxes is creeping up
would need a 7.69% yield from a             throughout Illinois are celebrating.          on us quickly.
taxable investment to match a               Community Banks not only accept               Prepare your
5% tax-exempt yield.                        deposits, they reinvest that money right      Taxes online
3. Specific investments may be subject      back into this area. Stop by                  with the #1 tax
in varying degrees to the alternative       Kinderhook State Bank and share in            preparation
minimum tax (AMT). For example, a           the celebration.                              product.
portion of a dividend that
                                                                                          Turbo Tax is
is derived from interest paid on certain
                                               During the week Kinderhook                 up to date with
bonds designed for
                                               State Banc Insurance and                   the latest tax
private activities
                                                                                          law changes.
may be subject to                              Financial Services will host
                                                                                          Simply choose one of their four
the AMT.                                                  Seminars???
                                                                                          products to get started on your taxes
Read a fund’s
                                                                                          today by going to
prospectus                                     Stop in and see the History of    and click
carefully before                              Kinderhook thru the eyes of our             on Turbo Tax.
investing and ask
                                                 High School students essays.
your tax professional to review your

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