The Salina Journal from Salina, Kansas on January 16, 1986 · Page 23
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The Salina Journal from Salina, Kansas · Page 23

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Salina, Kansas
Issue Date:
Thursday, January 16, 1986
Page:
Page 23
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The Salina Journal Thursday, January 16,1986 Page T3 , Tax benefits offered older Americans For older Americans, a rapidly growing segment of the nation's population, the tax laws offer a number of special tax benefits, according to the Internal Revenue Service. Single persons 65 or older do not have to file a federal income tax return if their income was less than $4,470. The limit for a married couple filing a joint return is $6,660 when only one spouse is 65 or older, and $7,700 if both spouses are 65 or over. For this purpose, persons are considered to be 65 on the day before their 65th birthday. Anyone 65 or older is entitled to an extra exemption of $1,040. Another special benefit is the Credit for the Elderly and the Permanently and Totally Disabled. The credit can in some cases reduce taxes owed by as much as $750 for single persons and $1,125 for married couples filing a joint return. Individuals under 65 will be eligible for this credit only if they retire with total and permanent disability and have income from a public or private employer because of that disability. Senior citizens who are thinking about selling their personal residence should consider the once-in- a-lifetime $125,000 exclusion of the gain on the sale of their home. An awareness of the tax consequence is essential before selling a personal residence at any age, but doubly so for those age 55 or older to whom this benefit applies. Taxpayers needing assistance with their returns can turn to Tax Counseling for the Elderly, an IRS program through which volunteers from many organizations provide free tax information and assistance to individuals age 60 and over. Some dues deductible Taxpayers who itemize deductions may be able to deduct dues to professional societies, employment agency fees, medical examinations required by an employer, subscriptions to professional journals, union dues and expenses, and work clothes and uniforms. A smaller tax bite is easier to swallow. You can with an Individual Retirement Account. Whether or not you have a pension where you work, you can lay aside up to $2,000 annually with all the taxes deferred until retirement. It's a fast way to accumulate a reserve, all with the compliments of the IRS. EACH working person may contribute as much as $2,000 to his IRA each year. On your tax return that contribution is a direct deduction from income whether or not you itemize, and you'll save an equivalent amount in taxes. For example, if you contribute $2,000 and you're in the 30% tax bracket, your tax liability will be reduced by $600! DON'T DELAY - SPEAK TO US ABOUT AN IRA FOR YOUR FUTURE TODAY! Substantial penalty may be required lor early withdrawal ^^^ • ^^ |^ THEJ3ENNINGTON STATE BANK Bennington, Kansas 913-488-3344 "We Are The Bank For You" •

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