The Courier News from Blytheville, Arkansas on January 20, 1956 · Page 3
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The Courier News from Blytheville, Arkansas · Page 3

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Blytheville, Arkansas
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Friday, January 20, 1956
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Page 3
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FRIDAY, JANUARY 30, 1956 BLYTHEVILLE (ARK.) COURIER NEWS PAGBTHRM" fncom« Tax Primer IV: Today's Problem: Reporting Income from Salaries, "Wages By RICHARD A. MULLENS Written for NBA Service Reporting income from salaries and wages on your tax return is more than just copying figures off the Form W-2 supplied by your employer. You should consider whether you are entitled to subtract sick pay or certain expenses from the salary or wage shown on the W-2. Any such item you can deduct or exclude from your income on page 1 of Form 1040 is espepcially important for the average taxpayer because even though he deducts such items, the taxpayer can still claim the so-called standard deduction of about 10 per cent of income if he desires. You should receive a Form W-2 from each of your employers during 1955 and you must, as in the past, send one copy of the W-2 to the District Director with your return. There are spaces on both Forms 1040A and 1040 for you to copy the amounts shown on your W-2's. If a tax was not withheld ftom your salary or wage, ask your employer how much he paid you during 1955 or keep a record of the amounts. Report such income on separate lines opposite each employer's name. This includes tips received direct from customers and wages as a domestic servant or casual laborer. After you have added up your income from salaries or wages, the next step is to sea whether you qualify for the new tax break for wage earners who received pay while absent from work on account of sickness or injury during 1955. Here's how this tax break works: If your employer has a plan or agreement with his employes that he will continue to pay you during absences on account of sickness or injury, and, during 1955 you received pay form your employer for the period you were absent from work on account of injury, then you can subtract so much of this pay as floes not exceed a weekly rate of $100. If you were paid while absent on | account of sickness, you can subtract so much of this pay as does not exceed SUM) per week after you have been sick for one full week. However, if your illness is such that you are hospitalized at least one day during your illness, you can subtract up to $100 per week of this pay from the first day of absence. For example, suppose you were absent from work on account of sickness for 10 consecutive calendar nays and your employer paid you $140 for the 10 calendar days, as he had agreed to do as one of your working benefits. If you were not hospitalized during the absence, then you can subtract pay fov only the last three days, or $42. However, if you were hospitalized for one or more days during the sickness, you could subtract the entire $140, since the rate of payment is less than $100 per week. This year you cannot claim the sick pay exclusion on Form 1040A. You must use Form 1WO, which has a special line (item 6) for subtracting sick pay. In addition, you have to attach a short statement to your return showing your name and address, the dates of your absences and whether from injury or sickness, the dates you were hospitalized, and the pay you received for the sick leave. You can use as a guide the sample statement shown with this article. ! Just as in past years, employes i can deduct certain trade or husi- j ness expenses from their wages or j salaries before entering the total in I Item 5 of Form 1040. Keep in mind that these expenses cannot be ( claimed on Form 1040A. But you can report them on either the short i or long form 1040, and still use the j tax table or standard deduction to j compute your tax. \ First, turn to page 5 of the offi-, cial instructions lor Fnvm 1040 and 1 read the explanation under "Trade; and Business Deductions of Em-: ployes." Then read over the follow-: Inst tips to help you with this part: i "Reimbursed expenses" include; such items as business entertain- \ ment and business dues which you Canoe on the Move OALVESTON. Tex. I* — A 12- foot dugout canoe of the type used by South Sea islanders washed up on the beach. It was believed the canoe, hand-carved of red mahogany, was blown across the gulf from the West Indies, sped on its way by the late summer hurricanes. pay and for which you are then reimbursed by your employer. If your terms of employment require you to pay such items without reimbursement, then you cannot deduct them on page 1 of Form 1040, but they may be deducted on page 2 in computing taxable income, provided you itemize your personal deductions. There are some expenses which you can deduct on page 1 regardless of whether you are reimbursed or not. These expenses fall into three groups: 1. Traveling expenses while away from home. According to the Internal Revenue Service, "away from home" means at least an overnight trip away from your home town or post of duty. 2. Transportation expenses. If as a part of your job, you have, to travel around your home town, you can deduct any costs . mciaenTW -preci: such travel. For example, a television repair man who uses his own' car to get from repair Job to repair job can deduct the expenses NEXT: Dividends and interest. of running his oar, Including depreciation. 3. All business expenses of "outside salesmen" can be deducted on page 1 of Form 1040. An "outside salesman" is a full-time employe engaged principally in soliciting business for his employer at places other than the employer's place of business. A salesman whose principal activtiy is service and delivery is not considered to be an "outside salesman." If you deduct any of these expenses, you must attach a statement of explanation to your return. There is available at any Internal Revenue office a schedule (Form 2106) which can be used to report these expenses or you can prepare your own statement. If you are «n- titled to deduct car , expenses, watch for later articles of the' Primer. They show how to. figure de- allocate expenses when your car is used both for business and for pleasure. ""i. L iTff iVeV „ i"™ ~r~ '• •rjiJ-"i*"«Tiu>'«'i'«rr r Factories, Mines Up Production WASHINGTON tf) — Production flowing from the nation's factories and mines jumped ahead 11 per cent last year to hit a new peak, according to preliminary figures made public yesterday by the Federal Reserve Board- The board's estimate placed 1955 industrial production a full 39 per cent above the 1947-49 "yardstick" period. And it said peak output was reached in November and De- comber. Production of durable goods climbed 18 per cent during the "Shoe consumption in the United States average* about throe palm per year per capita—two pairs for men and a little better than thre* RELIEF AT LAST ForYovrCOUGH If a common coW left you with a cough that has hung on for days and days act quick. It is dangerous to delay. Chronic bronchitis may develop. Get a large bottle of Creomulsion aod take as directed. Creomulsion soothes raw throat and chest membranes, goes into the bronchial system to help loosen and expel genny phlegm, mildly relaxes systemic tension and aids nature fight the cause of irritation. Use Creomulsion and get wonderful relief at last For children get milder faster Creomulsion for Children m ihe nink and blue package. Adv. CREOMULSION relltm Cowtis, Chut Colds, AcuK B.onchilK year, compared with a 1.0 per cent SEE YOUR NEAREST OLDSMOBILE RUPTURE Expert Coming Here Again GEO. L. HOWE Well-known expert, of Indinnnp- alts will personally demonstrate his method without charge at the Noble Hotel, Blytheville. Monday, Jfln. 23rd from 8 a. m. to 12 noon. Sunday Jan. 22nd by.appointment. Ask for Mr. Howe' 1 at desk, Mr. Howe says the Howe method contracts tho openings in remarkably short time on the average case, regardless of the size or location of the rupture and no matter how much .you lift or strain nnd puts yon back to work the snme day as efficient as before you wore ruptured. . • The HOWD. Rupture Shield has no leg ntrnp; waterproof, sanitary, practically indestructible nnd can b» worn while bathing. Each shield Is skillfully molded and fitted to the parts under heat which gives A perfect fit and nntlsfactlon. Large and difficult ruptures following operations especially solicited. Do not overlook this opportunity If you want gratifying result*. Mailing iddnM 431 E Wfcihlncton Bt.. Oakland City, Tnd City of Blytheville, Arkansas Statements of Receipts and Expenditures Year 1955 General Fund Street Fund Parking Meter Fund Veterans Housing Quarters Fund City Hospital Bond Sinking Fund City Hall Bond Sinking Fund City Park Bond Sinking Fund Hospital Refunding Bond & Int. Account Hoipilal Bond and Coupon Account Funds on Hand, 1-1-55 ............... - $ 28,903.32 $ 2,133.23 $ 6,508.33 $ 1,686.91 $14,886.86 $21,742.66 $11,206.49 $247.19 $10,446.26 Millage ........ .................. 34,078.59 12,227.60 9,782.10 5,434.50 Privilege Licenses ... ................. ...... 32,757.90 Vehicle Licenses ..................... ..... 18,036.25 i Police and County Fines .................... 29,431.57 Civil Costs ............................... 326.00 ' Dog Licenses ................... •-.. ....i... .i-i-i 519.75 Engineering Department Receipts ...•'. ....... ,. 7,333.65 State Revenue Office Rent ............. .'.... 260.00 State Turnback . . .. ................. ,,..-. 45,345.38 ,19,210.75 Sanitation Receipts .................... >. . . 26,012.25 Parking Meter Receipts . . .................. . 26,547.00 Natural Gas Franchise ..................... 520.79 Blytheville Housing Authority ............... , 3,138.27 Arkansas-Missouri Power Co. Franchise ........ 35,443.44 Veterans Housing Quarters Rents ............. 19,567.01 Sale of Buildings .............. .......... .. 17,022.00 Airbase Contract ......................... 36,017.50 Miscellaneous Receipts .................... 748.80 Commercial Gas Sales . . . . .............. - - . 63.30 Fund Transfers ......... . ---- ............ 17,500.00 Accounts Payable Increase .................. 1,298.72 Notes Payable on Equipment Increase ......... 25,300.00 Contributions on Street Construction .......... 20,402.29 _ _^ _^__— Total Receipts ..... ................. $314,132.16 $51,840.64 $26,547.00 $36,589.01 $ 9,782.10 $ 5,434.50 _ Total Funds Available ....................... $343,035.48 $53,973.87 $33,055.33 $38,275.92 $24,668.96 $27,17 7.16 $11,206.49 $247.19 $10,446.26 Disbursements: Street Department: Salaries ....................... ...... $ 37,452.86 27,094.42 Other Expenses ........................ ' 33,823.92 4,382.08 Street Improvements .................... 5,415.06 12,041.50 215.00 Police Department : Salaries ............................. 24,560.00 8,550.00 Other Expenses ................... ..... 6,785.05 181.94 Municipal Court: Salaries ........................ « 3,387.50 Sanitation Department: Salaries .............................. 40,580.81 Ofher Expenses ........................ 6,590.46 Fire Department: Salaries ........... ................... 7,212.50 Other Expenses ........................ 15,424.33 General and Administrative: Salaries .............................. 12,922.50 Other Expenses ........................ 35,803.96 143.93 Airbase: Salaries .............................. 20,894.33 Other Expenses .................... .... 3,508.54 9,777.75 Veterans Housing Quarters: 1,657.18 Salaries ....................... ........ 5,600.00 Other Expenses ......................... Payment on Land Deeded to Air Force. ...... • -_ -, «..., ,« «„« ^« Bond Interest ............................ 2,645.74 1,338.32 628.06 247.19 890.60 BondsRetired ............ . ............... WOO.OO 4,000.00 1,500.00 Fund Transfer* ........................... 17,500.00 City Library Transfer ...................... 5,434.50 Construction of New Fire Station ............. 18,009.41 Equipment Purchase ........ .............. 43,057.15 Uncollectible Checks Returned .............. 151.00 _ __ _ - _ __ _ _ _ _ _ - • Total Expenditure, ....... . ............ $321,013.88 $43,518.00 $26,446.94 $17,178.86 $12,645.74 $5.338.32 $2.128.06 $247.19 $ 890.60 Balance of Funds on Hand, 12-31-55 ..... ..... $22.021.60 $10,455.87 $6,608.39 $21.097.06 $12,023.22 $21,838.84 $9,078.43 $ 9,555J6

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