The Courier News from Blytheville, Arkansas on January 19, 1956 · Page 3
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The Courier News from Blytheville, Arkansas · Page 3

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Location:
Blytheville, Arkansas
Issue Date:
Thursday, January 19, 1956
Page:
Page 3
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Y1TOBBDAY, JANTJA11T 1», 19B8 BLYTMTTLLB (ARK.) OOURIBH IWWS Pf.0* TRBJ!!5 Income Tax Primer III Here's How to Determine Exemptions You Can Claim - Bf RICHARD A. MULLENS Written for NBA Service . Past experience has shown Internal Revenue that taxpayers have more questions about claiming dependents than about any other part of the tax return. This is caused in part by the fact that every taxpayer, regardless of source or amount of income, must determine now many exemptions he can claim and in part by the complicated rules which must be used. The official rules for claiming exemptions are necessarily condensed to save space. Most taxpayers like' to have additional explanations to supplement the official instructions. This article Is designed to give you tha* helpful additional information. The easiest way to figure out your exemptions is to use this arti-" cle along with the brief explanations that are in the official instructions mailed with your Blank tax returns. Let's take up first the exemptions for you and your wife. The official instructions make it clear that extra exemptions are allowed when you or your wife reach 65 or are blind. It will help you figure the exemptions for you and your wife, if you remember two things'. First — an individual was 65 or over in 1955 if his 65th birthday was on or before Jan. 1, 1956. Second—unlike your dependents, you cannot claim, your wife as an exemption if she files a separate return to get back the tax withheld on her earnings of less than $600. , If your wife has incftine of less than 1600, you should file a joint return. . .Her income'has to be included with yours, but you get i $600 exemption for her (more if she is 65 or.blind) so it's cheaper than filing separate returns. • . Furthermore, even though your- wife had no Income during 1955, you cannot claim an exemption for her if you file a separate return and she is claimed as a dependent by soother taxpayer who furnishes more than one-half* of her support. Another advantage- of filing a joint return is that dependents of either the husband or wife can be claimed on the return. This fcrinjrs us to the exemptions yo» can claim for your children aBd other dependents. You will find these tests In Item 12 of the instructions for Form 1MOA and on pages 4 and 5 of the instructions for Form 1040. To help you with this important step, NEA's income Tax Primer lists the tests and then gives some explanatory material. Remember, unless otherwise indicated in the test, each of your dependents must meet all the following:: 1. Received more than one-half of hi* or her support from you (or your spouse if you file a joint return). Explanation: support includes such items as the cost of education, food clothing, medical care, and lodging expense. If your child, stepchild, or adopted child is a student, any amount he or she receives as a scholarship need not be considered in determining whether you have .furnished over half the cost of supporting the child. Prior to 1954 this test made it Impossible for any member of a group, say three brothers, who shared in the support of a parent, to claim an exemption if no one of them contributed more than half tiie support. Under the new law, a parent can be claimed by one of the brothers provided he contribute* at least 10 per cent and the other brothers state to -writing that they will not also claim an exemption for the parent in 1955. These statements should be attached to the rertrn of the person claiming tbe exemption. Internal Revenue has Form 2120, Multiple Support Agreement, which you can fill in ^E CAN DIVVY UP MOM'S H ^KAY, 0UT WE'LL' j SUPPORT AND LET JOHN 1. K4VE;TO GIVE. language- HUtWit iUPKXT A 19 leatmhuted m t«l MOltod lo eblm o 3Mw*».n=7 •«*a*nt» out Iw t» loci oat too" » WfWtu rt h» ttwr) >n»on. to supply the necessary information if you desire. 2. Received less than $600 gross income. Explanation: This test does not apply to your child, step-child or adopted child who did not reach his 19th birthday on or before Jan. 1, 1956; or even though the child was 19 or over in 1955, the test does hot apply If he was a student in each of five calendar months during 1955. This means that you no longer lose on exemption for your child just because he earns over $600. He must, of course, file a return, but he is entitled to an exemption for hlmeslf and this does not prevent your claiming him as a dependent provided he meets the other tests. Remember that gifts or non-taxable ' income received by. the child, such as dividends on GI insurance, disability payments, and insurance proceeds, are not included in his gross income. ^. Did not file a joint return with her husband or his wife. Explanation: Suppose your daughter Was married on Dec. 31, 1955. Even though you were her sole support during 1955, you cannot claim her as a dependent if she files a joint return with her hus band. 4. Was either a citizen, or resi dent of the TJ. S. or a resident o Canada, Mexico, the Republic o Panama, or the Canal Zone. Explanation: This means yo cannot get an exemption for par ents or other dependents living in Europe or other places not listed in 4 if they are not citizens of the t 5 If your dependent is a citizen o the TJ. S., it does not matter where he lives. 5. Was related to you in one o the ways specified in the tastruc lions or who lived with you in you house, even though not related t you. Explanation: This means you cal claim an exemption for someon dependent upon you even though h isn't a relative. He must live Witt you as a member of your house hold, however, and meet the firs four tests. Reporting income fr'ot salaries and wages. The British commonwealth nations covers one-fourth of th world's land surface. HAMBURGERS For your protection, our Hamburger Patties are prepared and delivered frozen by a nationally known government inspected meat packing plant. A warm-well-seasoned bun enhances the wholesome delkiousness of this pure hamburger. KREAMKASTIE Walnut & Division Phone 3-8851 DRIVE-IN LECTURESHIP Church of Christ Blyriieville, Arkansas In Progress through January 22 7:30 P.M. .- • • THURSDAY NIGHT, JANUARY 19 "An Account With God" ................................. ........ ..Paul Reflet Senatobia, Miss. FRIDAY NIGHT, JANUARY 20 "Are YouLkenin^'. ......................... ......... '"" SATURDAY NIGHT, JANUARY 21 "What Does It Mean To Believe In Christ" ...... ............... Glen McDoniel Piggott, Ark. SUNDAY MORNING, JANUARY 22 "Salvation By Giac* Through Faith" . . . .. ..-.., ..... ......... . . . . . ; . • Howard Set Lexingtra, Ky. SUNDAY NIGHT, JANUARY 22 ~ "A Greater Than Sotomen" ...... .... ............ ........ ......... Howard See Lexington, Ky. Congregational Singing EVERYONE INVITED! aide possible THOMPSON! D S $ 119 I" v 0(A to-J9t sttlto Nationally Famous B -JEWEL! WATCHES f Regularly $24.75 to $3X751 YwCkoict UDKV MESS SITUS MAN'S MESS MODELS WATHMtEHSr WATCHES HNESTONE SET STYIES , LAME? MKEtET Irl II ALL COSTUME JEWELRY OFF 10K GOLD GENUINE ONYX INITIAL RINGS $777 E-X-P-A-N-S-I-O-N Watch Bands Your $O88 Choice ^ SALE STARTS FRIDAY 9AM. Entire Diamond Stock - - 40% off Entire Stock of Birthstone Rings - - - 40% off All Benrus Watches Reduced i off Silverware Up to 50% off 3 PC. Set of Luggage - - $14.88 All Men's Jewelry i off THOMPSON JEWELERS 24 Ps. Service for 6 STAINLESS STEEL DINNERWARE $599 1847 Rogers Cold Meat Fork and Salad Spoon i^G l - Re 9 $1 $3.75 I 99 ALL GIFTWARE

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