The Courier News from Blytheville, Arkansas on January 18, 1956 · Page 3
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The Courier News from Blytheville, Arkansas · Page 3

Blytheville, Arkansas
Issue Date:
Wednesday, January 18, 1956
Page 3
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WEDNESDAY, JANUARY 18, 19W BLYTHEVILLE (ARK.) COURIER NEWS PAGE THREE Income fox Primer //: Choosing Proper Form. Is Very Important Item By RICHARD A. MULLENS Written for NEA Service If you are one of the many taxpayers who is a little uncertain as to just what form to use in filing your 1955 tax return, you will find this second article of the NEA Income Tax Primer well worth saving. It not only gives you Helpful tips on How to decide which return form .to use, but It also explains the special tax computation available to surviving widows and. wido'wers and to heads of household. This year, as in the_pasUhci£_ are three typei of returns available. First, there is the wage earner's return, Form 1040A, printed on a check-sized card that can be run through a B is ihe easiest iorm to fill out because Uie tax is computed by the District Director's office. However, only certain taxpayers can, use, this form and it does not always result in the lowest tax. Form 1040 has been changed somewhat this year, but still has a short-form version, consisting of the first two pages of the return, and the long-form .version, consisting of all four pages. It is still important to determine whether you should itemize. your personal deductions, such as contributions, taxes and interest or whether you should take the so-called standard deduction of about 10 per cent of income instead. : -• Before you can decide this you must know: ~ 1. What Income you have to report.' •• • : '' '• - . - : 2. What deductions you are entitled to. 3. What credits you can claim. Subsequent articles in NEA's Income Tax Primer will help'you determine your income, deductions and credits and then give you detailed help in choosing the best form for your use. Right now, however, let's consider whether-you can and should file a joint return or as the head of a household. Any taxpayer who was married on Dec. 31, 1955, can file a joint return with his spouse. In nine cases out of ten it is advantageous for married, persons to file joint returns because this,is the only way they can split their combined income in half before, applying the tax rate. In' rare situations, where both spouses have substantial incomes and one has large capital losses or medical expenses, separate returns might giveTTlower tax than a joint return. The best way to tell in such a case is to compute your tax both ways and'ttisn use the cheaper method. if. your husband or wife died during 1955, you are considered married for the entire-year and may file a joint return provided, of course, that you report both your income and the income of your deceased spouse. .Any widow or widower whose spouse died in 1953 or 1954 can also compute the tax for 1955 as if he or she were filing a Joint re- tHrn provided: 1. He or she has not remarried before Jan. 1, 1956, 2. He or she supports a child or step-child In His or her home, and' 3. He or she was entitled to file a joint return In the year of the spouse's death. This tax break is designed to help the surviving spouse in the difficult early years following the death of the husband or wife. It cannot be claimed on Form 1040A so do uot use this form if yo» are MAKRIEP BEFORE MlpNlGHT, 5O WE CAS FILE A JOINT JOINT SAVES TAXES UNLESS YOUR WFE EARNS AS.MUCH AS YOU DO.. entitled to this tax benefit. So far we. have" discussed how married persons or . "surviving spouses" file the returns. .Unmarried persons.must file separate returns but if an unmarried -person can qualify as the "head of a household," he can use, a special tax table that gives him about half the tax break given to those who file, joint returns. To determine .whether you qualify as the head of household, answer the following questions and then compare your answers with the answer chart: 1. Did .you furnish' nipre than half the cost of maintaining the home, where'you live In 1955? Yes No .. (Note: Include in the cost; property,taxes, mortgage Interest, reiit, utility charges, upkeep and repair, property insurance and foocj. consumed there. Do not count clothing, ,education, medical expenses, vacations, life insurance and transportation.) • : • .. 2. Did you have living; with you hi the home any relative described in (a) or (h) below? Yes .. No ...... (a) Your child (natural or adopted), a grandchild, or a stepchild. (Note: If such a child is unmarried, it doesn't matter if he has income of $600 or more, or, if you don't contribute more than half his support. 'But if" he is married, he must be .your de-,pendent: Article 3 tells.about dependents.) ' , (b) Any other relative who is your dependent. (Note: Do not count an unrelated person living .with you even though he may. be your dependent. Also do not count a dependent you claim under a multiple support agreement as explained in Article No. 3.) 3. Did the relative described in 2 (a) or 2 (b) above,live with you during 1955 or up to the date" of his or her death except for temporary absences? Yes No (Note: A relative at college is considered temporarily absent from your home If he lives with you during vacations.') 4. Did you furnish more than half the cost of any home in which either your dependent mother or father lived during 1955? Yes No 5. Were you a non-resident alien any time during: 1955? Yes -..:... No ...... Answer Chart You qualify as the head of household if you answered 4 "yes" arid 5 "no", regardless of what your answers to the first 3 questions were. If you answered 4 "no", then you qualify as the head of household only if your answer to 5 is "no" and the answers to the first 3 questions are "yes". Yon cannot get the benefit of the Over 3,OOO,OOO car owners know... 199 Oreat far protection! Allstate's easy to understand policy gives the broad, reliable protection you expect from the insurance company founded by Sears. Great for »rvic«! Whatever happens, you're in good hands with,Allstate. Agent service is prompt, dependable. CWm settlements are fast and fair. , Gr*ot for vofu*! Allstate's rates are Usually lower than those of most other leading companies. .You can't buy better protection, why pay more? See or phone your AUsute Afoat today! GENE L. JOHNSON 2328 Birch St. Blytheville, Arkansas Ph. pOptr 3-3159 Tw'ra ki (eod hffMi wMi: ii reduced "head, of household 1 ' tax rate If you file on Form 1040A. Do not use this.form if you qualify as a head of household. NEXT: The rules on dependents. Man Refuses Inheritance PROVIDENCE, B. I. (ffl—Earl S. Jenckes of Wyomissing, Pa., says he has enough money and doesn't want $100,000 left him by his late sister Miss Clara K. Jenckes. Miss Jenckes 1 will was filed yesterday in Probate Court at Woonsocket. The Providence Journal talked with Jenckes by telephone and quoted him as saying he turned down the inheritance because he had enough .without it. He described himself as a manufacturer of goods and about 80 years of age. As a result, the money will go to Jenckes'. two' children, George A Jenckes and Mrs. Louise Fay, both of Wyomlssing. SWEETHEART —Betty Franklin, daughter of Mr. and Mrs Buster Franklin of Reiser, has been named sweetheart of Reiser's Future Farmer .of America chapter. She's a senior at Reiser High -School, Pigeons Win Park Skirmish LOS ANGELES Wl—Pigeons won a skirmish in their Battle of Bunker' Hill yetserday. ; As soon as workers finished laying a sidewalk in the reconstructed Bunker Hill section, a flock of the birds swooped down on the wet cement. Perhaps angered because the city is modernizing their rustic setting, the pigeons, nopped, skipped and jumped on the mushy surface. Cement worker Andy Agullar claimed some even danced. Then the pigeons retreated to a nearby rooftop. Workers counterattacked and refinished the cement. Read Courier News Classified Adi. Traffic Hazard CHICAGO OT—John Karr, 2&, re-'j ported his car stolen and was. promptly confronted with an im- .' pounded auto and 62 traffic tickets. Police towed the stalled car away I after they found the tickets under the windshield visor and 1 in the glove compartment. Banging from speeding to illegal parking,' the ignored tickets dated back to 1950. Karr said he had not heeded the tickets because "I didn't have the money." " '• Read Courier News Classified Ads. Are All Cold Remedies Alike? No! For example, 666 is the .wide- activity medicine, Which combines 4 of the "most effective, widely-p*e- ecribed drugs knbwn, 1 to relieve all cold miseries sooner. 666 i* more potent and gives, positive, dramatic, rapid relief from miseries of all kinds of colds. That's why 666 is unsurpassed, in effectiveness. Try it. 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