The Courier News from Blytheville, Arkansas on January 21, 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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Saturday, January 21, 1956
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Page 3
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SATURDAY, JANUARY 21,1958 BLYTHEVILLE (ARK.) COURIER NEWS PAGE THREE Income Tax Primer V: Todays Problem: Income From Corporate Dividends, Interest By RICHARD A. MULLENS Written for NEA Service With corporate earnings and the stock market at new highs in 1955, a record number of taxpayers will be reporting dividend income on their tax returns. This article of the Primer takes up the problems of reporting dividends and interest income. The schedules on Form 1040 for listing "divideffds~ and interest have been moved from ""page 2 to page 3, but otherwise there is little change in their appearance. Under the new tax law which went Into effect In 1954, the first $50 of taxable dividends received by each individual-taTcpayer is ei=" eluded from income. That means It Is not taxed. On a joint return, each spouse is entitled to the $50 exclusion on dividends received by him or here. Where married persons living in . community property states are entitled to divide dividends between themselves, even though all the stock is owned by one of them, each spouse can exclude $50 or a total of $100 of the dividends received by them in 1955. In non-community property states, the $50 exclusion applies separately to the individual income of husband and wife whether a joint or separate return is filed. The exclusion applies to taxable dividends. Most distributions by a corporation to its stockholders are taxable dividends. Occasionally, however, corporations make distributions which are non-taxable and do not have to be reported as dividends. Generally speaking, a corporation advises you whenever It makes t non-taxable distribution. This exclusion can be claimed on either Form 1040A or 1040. If you file on 1040A, you only show in item 9 the dividends which exceed the exclusion of $50. On Form 1040, however, you report all taxable dividends and then subtract the exclusion on line 3 of Schedule A. Let's suppose that after subtracting the exclusion, you still have 1 some dividends left over. The new law permits you to subtract from the tax you would otherwise owe, a credit equal to 4 per cent of any dividend in excess of the exclusion This credit cannot be claimed on Form 104QA,, so do not use this return if you have .dividends in excess of the $50 exclusion.' The easiest way to compute the credit is to follow Schedule J of Form 1040. Note that the credit cannot exceed the lesser of the tax that would otherwise be due from you, or four per cent of your taxable income. And remember, the dividend break does not apply to dividends from foreign corporations, including Canadian companies, or from any mutual savings banks or building and loan associations. These dividends are reported in line 5 Schedule A on Page 3 of Form 1040. ^ The new law taxes Interest in much the same way as the previous law. All taxable interest must be reported in Schedule B on Page 3 of Form 1040, or in Item 9 of Form 1040A. Most interest you receive is taxable. However, if you own any bonds or securities issued by a city or state, the interest on these is not taxed by the Federal Government. The Interest on many United States bonds issued prior to March 1, 1941. THESE WILL HELP vou- I V*i£PT ALL QUA DIVIDEND PON' SAVINGS ACCOUNT INTEREST fARNEP is wholly or partially tax-exempt. *•If you have any such bonds, read the section under "Interest" on page 6 of the official instructions. You must report interest on savings and deposit accounts when it is credited to your account even though it has not been entered in your bank book. Interest represented by a bond coupon should be reported in the year when the coupon is due and payable even though you don't clip and cash it. You can report the interest on Defense, War and Savings bonds In either of two ways. First Way: Ignore toe Interest until you cash them, and then report the entire difference between what you get and what you paid. This is the easier way. Second Way: Report the interest each year as it accrues. Tha mount of accrued interest can be determined from the table on the back of the bond. It is the difference between what you paid and what you could cash the bond for on-Dee. 31, 1955. Subtract from this any interest you reported from these bonds on previous returns, and report the rest this year. Once you start using this method, you cannot change without first getting permission from your District Director. NEXT: Capital gains and losses. HEADS DRIVE-Gov. Joseph Foss of South Dakota, former Marine flying hero, has been named national chairman of the 1956 Easter Seal campaign to help crippled children. The campaign will run from March 10 to April IG.rlt is sponsored by the National Society lor Crippled Children and A^dults Pearls Made Good Bullets LAKEWOOD, Calif. OT—Youngsters told officers the little pellets made great ammunition for bean shooters. Then the officers told the youngsters they had been shooting real pearls. Jeweler Charles Del White, 58, had reported $1,000 worth of the gems taken from his home, a converted bus parked in front of his son's house. . Reports of flying pearls led sheriff's deputies to a pair of 13-year- old boys firing them through their bean shooters. They were down to their last $300 worth. Pearls worth S150 were recovered from a juvenile battlefield. Deputies said the boys probably will be turned over to their parents. Search for pearls continued. Dime a Day MILWAUKEE (fl>) — Raymond Paulus, 51, was sentenced to serve one day in the House of Correction for each of the nine dimes he admitted stealing from a March of Dimes display at a depot here. Paulus, charged with disorderly conduct, said in District Court he took the 90 cents because "I needed a pair of socks." Pushed-Up Bosoms, Banded Bustlmes to Continue in '56 ROME lift— Understated Empire, the most successful. line Introduced by Italian dressmakers last season, promises to continue in cotton Irocks in 1956. Pushed-up bosoms, banded and ribboned under the bustline, n normal unemph'asized waistline and slim skirts also can be expected again, now hi bright, gay warm weather fabrics. It's improbable that the line will become more pronounced. Nobody will risk exaggerating it into fancy I Eleanora Garnett, exponent of j Empire, says, "A line doesn't change ! in the spring if it was any good during the wintertime." and keeps ' her bustline up. Her colors are amaryllis pink and pea green. Gattinoni is for "fullest expression of Empire," calling it "a great line that everybody loves." .She claims it's good even on chubby clients. Adding lots of pleats, Gat- tinoni is concentrating on cotton in yellow, pale blue, white and grey. dress. That's what willing-to-talk designers say of the spring-summer collections being shown today. Buyers from all parts of the world, including many from the United States, will be on hand. Dressmakers who were all out for the Empress Josephine effect before make no secret of their intention to persist in its romantic j ultrafemininity. Houses that didn't follow the trend at the last show- Booze Snooz0 COVINGTON, Ky. IIP)—Snoozing off a booze under a Judge's bench is a bad bet. So said City Commissioner Charles Rump Thursday after finding Walter Thornberry sleeping beneath a judge's desk in the courtroom during a City Council meeting. Thornberry was charged with drunkenness. MORE STATES If admitted to the Union, Alaskn would be the first of the 50 state* in the area and last ,in population, while Hawaii would be 47th in area and 44th in 'population. COMIN' THROUGH—A midget clown directs "traffic" between the legs of stilt artist Henry Lewandowski in Ascot, England. Photo was .taken during rehearsals of the Bertram Mills Circus. Lewandowski's stilts are 34 feet high. Saturday Night Bathing Is Out MOSCOW lift— You can have a. bath once a month if you live in Barnaul in the Altai territory near the Outer Mongolian border. There aren't enough public bath houses to go around. That, says the official Soviet government newspaper Izvestia, is typical of the poor state of public services in scattered parts of the Soviet Union. i ASPHALT LAKE Pitch Lake, in Trinidad, is the world's largest producer of asphalt. An average of 200,000 tons of asphalt is excavated yearly, but the material soon replaces itself from the lake's depths. their plans. Bell Announces New Transistor NEW YORK (.^ — A new high- frequency transistor, with many potential applications in weapons, television, radar and telephone, has been announced by the Bell Telephone Laboratories. Transistors are the tiny wafers of rare germanium or silicon, encased in plastic, whic h can do most of the tilings a bulky vacuum tube does not—and do them befctev. Bell said the new device, called a diffusion transistor, could amplify 2,500 telephone conversations at once on a telephone line, about three times as many as the best previous transistor can handle. nriiT • FLASH CAMERAS Ktlvl • MOVIE CAMERAS Complete Selection of Flash Bulbs/ Polaroid Film, Color Film, Movie BARNEY'S DRUG STORE 2006 W. Main Ph. 3-3647 HAMBURGERS For your protection, our Hamburger Patties ar« prepared and delivered frozen by a nationally known government inspected meat packing plant. A warm well-seasoned bun enhances the wholesome deli-ciousness of this pure hamburger. KREAM KASTLE Walnut & Division Phone 3-8051 < DRIVE-IN Killed in Wreck LIMA, Peru (>P)—The newspaper 21 Comercio of Cuzco reported y«- «rday eight persons were killed when a truck in which 17 persons were riding overturned into canyon. YOU CAN'T STOP THE QUEEN MARY WITH A CLOTHESLINE . . any «*x. than y« can k«p a tornado from hitting your Hou*e. But you COM buy insurance — th* right kind, in the right amount. We'H b« glad to odvb*. NOBLE GILL AGENCY GLENCOE BLDG. 3-6868 Now It Is Possible To Own Your Own Home Yes, now it is possible for you to own your own home for a reasonable price. Delta Home Investment Company is making that dream come true for the people of this area. These homes are complete with all fixtures including bathroom, kitchen sinks and hot water heater. They have been completely remodeled inside. and • out. The size? Two, three, or four bedrooms depending upon y o u r family's "heeds. Another feature is the fact that you need NO DOWN PAYMENT, if you own your own lot. All you pay are the moving- and closing costs which ordinarily will not exceed $300. And your monthly payments are less than what you are probably now paying for rent. ' We urge you to come out and look over the opportunity of a lifetime. No obligation. Our office is open from 7:00 a.m. to 6:00 p.m. Delta Home Investment Co. . OPEN WEEKDAYS AND SUNDAY 7 A.M. to 6 P.M. Blytheville, Arkansas Air Bas« Road Phont 3-3369 SATURDAY, JANUARY 21st DRIVE-IN BAR-B-Q EAST MAIN STREET AT BLYTHEVILLE, CITY LIMITS Phone 3-9970 All Types Sandwiches Chili Soups Pies Our Specialty; Barbecue Plate Delicious Charcoal Pit Barbecue French Fries and Salad Ice Cream Sundaes Shakes Malts FREE COFFEE AND OONUTS Served From 11 a.m. to 11 p.m. Saturday (today) (In Cooperation with the Donut Shop) FREE CONES FOR THE KIDDIES Owned and operated by Mr. and Mrs. Gaylord Lewis

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