PAGE 6 T U C S O N D A I L Y C I T I Z E N THURSDAY, MARCH 7, 19*8 The Reluctant Taxpayer By William L. Raby, CPA Alter figuring out how much tax there, would be on separate returns versus how much tax there would be on a joint return, a husband and wife found that for 1967, for the first time, he would save about $35 if he and his wife filed separate tax returns. A new medical expense rule was the reason. This married couple had $20,000 of gross income. They paid out $600 a year for medical insurance. This insurance normally covered all, or substantially all, of their medical expense deduction because only the medical expenses in excess of 3 per cent of income are deductible -and $600 of course is not in excess of 3 per cent of $20,000. However, for 1967 you are entitled to deduct, without regard to the 3 per cent limitation, one- half of the medical insurance premiums that you pay -- with a maximum deduction of $150. Because they lived in a community property state, the husband and wife in this case could split all their items of income and deductions right down the middle if they filed separate returns. If they filed a joint return, their medical expense would be limited to one $150. On separate returns, each would be entitled to deduct one-half OF HALF of the $600 of medical insurance -resulting in each of them deducting $150 and producing ?150 more of total deductions on the two separate returns than on a combined return. Because of the community property situation, the extra work in filing separate returns was minimal. The husband prepared his separate return, reporting his one-half of all items of income and expenses. He then had photo copies made of his return, changed the name and social security number on it to that of his wife, recopied the copies, and had a set of returns for himself and one for his wife. In non-community property situations, it may also be found advantageous to file separate returns where one spouse has a small income but very large medical expenses. The 3 per cent limitation applied to the smaller income may produce a larger amount of expenses in excess of the 3 per cent limitation than if the income is combined on a joint return. The only way to be sure this will cut taxes is to figure it both ways. Pueblo High Teacher Gets $750 Grant Richard D. Rodgers, chairman of the Pueblo High School social studies department, has been selected to receive a John Hay Foundation award of $750. Rodgers' grant will be used for travel expenses and preparation of materials such as film slides and tapes for the high school's humanities course. The teacher, a graduate of the University of Arizona, plans to travel to Colorado, Wyoming and Montana, preparing material on old forts, the Custer battlefield and the Oregon and Santa Fe Trails. State Notes Rise In Farm Workers PHOENIX (AP)--The number of farm workers in Arizona is on the rise again, following a 10- year downward trend, the Arizona State Employment Service reported Tuesday. It said the number increased from 37,200 in 1965 to 37,900 last year. The number had been on the decline from 1956 to 1965. Wages for farm workers have also gone up. From an average of $1.08 per hour in January, 1966, the wage rate has risen to $1.29 in January, 1968. Tombstone Well To Be Re-Drilled PHOENIX (UPI) - An Oklahoma firm has been granted a permit to re-enter an inactive oil well near Tombstone. Basin Petroleum Corp., Oklahoma City, received the permit to drill to 3,000 feet in the old Southwest Oil Co. No. 1 Davis- Clark 12 well 12 miles southeast of Tombstone. It has been inactive staoe 1956 when oil shows and gas bubbles were reported between 2,385 and 2,647 feet. 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