FRIDAY, JANUARY 27,195« ~" BLYTHEVILLB (ARK.) COURIER NEW* PAGE THREE Income Tax Primer X: Today's Problem: How to Deduct Medical and Other Expenses By RICHARD A. MULLENS Written for NBA Service Before you can make a wise choice between itemizing your deductions or taking the standard deduction, you need tp know what items are deductible. The previous Primer article described some of the deductions. This article takes up the remainder. Medical expenses exceding three percent of adjusted gross income are allowed as a deduction, subject to maximum limitation explained later. The three per cent rule applies to taxpayers under 65 and-4e- medlcal expenses for dependents of taxpayers over 65. There is however, no percentage limit on the deduction of medical expenses for the care of the taxpayer or his wife if either was 65 on or before Jan. 1, 1956. Medical expenses which are compensated .for by insurance cannot be included in the medical expense deduction. The maximum dollar limit on the amount of medical expense deduction is now: On a joint return or return of a head of household, $5,000 if two exemptions are claimed, $7,500 if three exemptions arc claimed, and $10,000 If four or more exemptions are claimed. On a separate return of a taxpayer not the head of a household, $2,500 If one exemption Is- claimed and $5,000 if two or more exemptions are claimed. In determining the limit on medical expenses, do not count the ex- tra exemption for old age or blindness. Expenditures for medicines and drugs can be treated as a medical expense only to the extent that they exceed one per cent of your adjusted gross income, regardless of your age. The Schedule on page 2 of Form 1040, if filled out carefully automatically includes medicines and drugs to the extent that they we in excess of one per cent of your adjusted gross income. Page 12 of the official instructions describes the expenses which can be considered medical or dental expenses. The so-called child care deduction for working mothers has several restrictions. For one thing, MOX THEATRE On W. Main St. In Blytheville Phone 3-4621 Weekdays Show Starts 7:00 p.m. — Sat. & Sun. 1:00 p.m. The Finest in Cinemascope Presented in High-Fidelity Optical Sound! LAST TIMES TONIGHT Double Feature — AND — l AHIHC ALSO CARTOON SATURDAY Double Feature — AND — "IN OLD CALIFORNIA' ALSO SHORTS SUNDAY & MONDAY Double Feature M-C-M'I JHSTIIIrltCE Of SUSPtNSE! SPHCER TRACY it ROBOT RYAli ** IAD MY AT MACK ROCK fflCI -IE »M-«BiaLB -AND — MANYRI VMS even though you quamy lor ine de duction, you cannot claim it and the itandard deduction too. Like other personal deductions, it can only be deducted if you itemize on page 2 of Form 1040. The only people entitled to this deduction are women (including working wives) and men (provided they are'widovrers, legally separated, or divorced) who, in order to be gainfully employed, must pay for the care of one or more of the following described dependents: 1. A son, daughter, or stepchild who is under 12 years of age. Amounts paid for the care of such a person 32 years of age or over cannot be included in the deduction unless the dependent qualifies as: 2. Any dependent who is physically or mentally unable to care for himself, A taxpayer is considered tp oe jainfully employed if he is working lor someone else, is self-employed, or is looking for work. For any one year, you cannot deduct more than $600 for such expenses, regardless of how much more you actually spent. If you spent less than $600 for care of the dependent while you were gainfully employed," then 'you can only deduct the amount sent. The amount of the deduction is subject to two further limitations if you are a working wife. These two limitations do not apply, however, ;o a working wife whose husband 13 incapable of self-support because of a mental or physical disability The limitations are: 1. The working wife must f ile a joint return with her husband and 2. Her dependent's care deduction must be reduced by the amount by which the adjusted gross income on the joint return exceeds $4,500. For example, if she has spent $500 for dependent's care while she was "gainfully- employed" and the adjusted gross income on the joint return was $4.650, her deduction would be reduced by $150 ($4,650 minus $4,500) to $350. Do not include in the deduction any amounts paid for a child or other dependent's care to someone who Is also your dependent for tax purposes. Thus, if a widower pays his 17-year-old daughter S60 a month to ste yhome and take care of his younger children, he is not entitled to a $600 child care expense deduc- MMMNO.m ALSO-CARTOONS Defenders of Quemoy Island Grow Stronger Day by Day tion for those payments. Property losses caused either by a caqsualty or theft can be shown on page 2 of Form 1040 even though the property is for your own personal use. Casualty losses Include damage from fire, storm, flood, lightning, hurricane and other sudden, unexpected or unusual causes. Thus damages from a bursting boiler or frozen pipes would be a casualty loss. You can deduct damages to your car caused by a collision unless the collision was due to your wilful negligence. Faulty driving is not classed as wilful negligence, but driving while intoxicated is so classified. —Tiw miuimlot llitt lotA ui damage to be deducted should be computed in accordance with the official Instructions on page 12. If you have difficulty determining the fair market value of the property both berore and just after, the loss, as required by the instructions, remember that such things as repair bills, Insurance adjuster's estimates, and police or fire department records are good evidence of the amount of your loss. A loss from a casualty or from theft should be deducted in the year the loss occurred. If you are covered by insurance, the loss must be reduced by any recovery- If your casualty loss in 1955 exceeds your 1955 income you can deduct the excess from your 1953 and 1954 incomes and get a refund. Do this by filing a claim on a form you can get from,your District Director of Internal Revenue. The last deduction schedule on page 2 is a catch-all for deductions not taken elsewhere. Typical examples of items that can be deducted in the "Miscellaneous" schedule are: 1. Expenses of earning your salary or wage. Any ordinary and necessary expenses in your line of work are deductible. This Includes dues, initiation fees and assessments to labor unions, and professional societies: entertainment of customers to promote specific deals and not just for general good will; uniforms, work clothes and costumes required in your work and that do not replace your own ordinary -clothing; safety equipment, tools and supplies necessary and customary in your work. 2. Alimony paid regularly, but not necessarily at fixed intervals, under court order, you cannot deduct any sums specifically designated for the support of your minor children. 3. Costs of management, maintenance and conservation of property held for investment. This includes cost of a safety deposit box for your securities. 4. Fees or eipenscs incurred in preparing your Income tax return. By JAMES CART QUEMOY Island UR — This Nationalist Chinese outpost Has been called the Island of the doomed. But its defenders don't feel that way. They are growing stronger day by day. Defiant in the face of renewed tension in the Formosa Strait, the bristling little fortress is an armored thorn in the hide of Red China. It lies only six miles from the mainland, across the mouth of Amoy harbor. The tp - square - mile Island Is ringed with 400 Communist gun positions and an estimated 120,000 Communist troops. It has been pounded by more than 33.000 shells since the vest-pocket war began Sept. 3, 1954. Eighty-one of its defenders and two American observers have been killed, 113 other persons wounded. Yet from one end of the spool- shaped Island to the other a cor- respondent can find no despair, only tough, guarded optimism. The Nationalists feel they could repel a Red assault and are making every possible preparation to meet one. They say it can come any time. Domes of underground forts jut from almost every hill. Pillboxes dot the lower levels. Bunkers line the ridges. Trenches cut across from position to position in zig-zag patterns. Concrete shelters and sandbagged installations are everywhere. Interlocking fields of fire ring the island from staggered gun positions. Young, tough-looking troops swing by. On the lowlands, the farmers continue to work their fields. They also have a major role to play in the defense plan. The 44,000 civilians on the Islands hav been trained and organized into a home guard. They soon will have arms. Driver Saved By Windshield GEORGETOWN, Ky. If)— There, but for the grace of his windshield went William 0. Clark. Police Chief Donald Vanarsdall said Clark, 34, was shot at twice, but that the .25-caliber bullets spent their force going through the windshield. One bullet hit Clark In the forehead, the other in the lip, but they only made dents. Ernest Lee Estepp, 24, was charged with shooting and wounding and carrying a concealed deadly weapon. Vanarsdall said Estepp apparently shot at Clark after a dispute over Clark's ex-wife. wanted to get home before they gave out." Rancher's Death Was Accidental LITTLEROCK, Calif. (If) — A rancher using a rifle to drive wild pigs off his property was killed, sheriff's deputies reported, when the Coltish gun discharged accidentally. Dead is Charles L. Kowinan, 2S. His widow Marian, 32, told the officers he husband had taken a .32- caiiber rifle and gone out to chaa« the pigs which have been ravaging their small ranch near Los Angelei. Officers said Nowman apparently was using the gnn as a club when It fired. Relieve Suffering .last with Two Lutheran Ministers Unfrocked SET BOUNDARY The Treaty of Guadalupe Hidai go, concluded between the United States and Mexico in February of 1848, recognized the Rio Grande as the southern boundary of Texas. MINNEAPOLIS HP)—Two Lutheran ministers were unfrocked and a third was declared innocent at a special conventine of the English Evangelical Lutheran synod of the Northwest backed up recommendations of church committees that had tried them on heresy, charges. Voted out of the ministry were the Rev. George Crist Jr., 31, former pastor of Dunham, wis., and the Eev. Victor K. Wrig-ey, 36, former pastor at Brookfied, Wis. Both earlier were found guilty of heresy. Ruled innocent was the Rev. John Gerberding, 33, former pastor at Menornonee FaUs, Wis,, who also was acquitted in his earlier trial. All had been accused of doctrinal deviation on such matters as tha virgin birth of Christ and the resurrection of Chirst. The three were asked at the conclusion of their trials to turn m their ordination certificates synod headquarters, but 6nly the Rev. Mr. Crist complied. He has been studying at the University of Iowa since he was spspended Aug. 2, 1955. The Rev. Mr. Wrigley was sus- epnded from the ministry after being found guilty last summer, but has continued as pastor of his church at the request of his congregation. The synod last .night passed a resolution calling on Wrigley's parish to "review its actions," and added that if the parish failed to conform with the synod within three months the'synod's executive committee ".would enter into such MUSCLES ACHE Due to a COLD? DO THIS f AST—tor fast relief- take St. Joseph Aspirin. First cholca of millions because) it speeds auch soothing comfort. 200 tablets 791: 100 49^. Why pay moro? *Q St. Joseph n| ASPIRIN^ If B. F. Goodrich DRY-CHARGED RATTI-RY "GLASSTEX" •••*•«***•»« 4 YEARS Of SURE STARTING POWER 4 YEARS OF POWER FOR LIGHTS 4 YEARS OF POWER FOR RADIO, HEATER AND ACCESSORIES BACKED BY A 4 YEAR GUARANTEE THIS IS THE BATTERY THAT GIVES YOU TROUBLE-FREE SERVICE. MORE MILES OF SAFE, SURE, DEPENDABLE SERVICE. roo <-<-eo Ay BF. Goodrich FIRST IN RUBBER - FIRST IN TUBELESS mmmBmmmsmaMmmmm 417 W. Main Phone 3-8116 egal action as deemed necessary." • The Rev. Mr. Gerberding resign-' ed his pastorate after his acquittal and is now working on a weekly newspaper at Lancaster, Wis. If h-?, should receive a call from, another larish in the future, he is free to apply to the synod lor permission to • accept it. j When Dr. Charles L. Grant, St. ?aul, asked how "two could be, ound guilty and one innocent when • ill th^ee signed doctrinal statements ! and boasted how closely they stuck together," he was told that the Rev. Gerberding had voluntarily signed a statement subscribing to "affirmations of the Christian faith." The synod voted that "proper administrative . action' 'had already jeen taken in the Rev. Mr. Gerberd- ng's case. Pastor Crist was the only one of ihe three w r ho spoke in his own de- 'ense. He told the synod he object-1 ed to procedures used in investigat- ' ng his case and that his theological! point of view "was not un-Christian or un-Lutheran." Tire Tale LAKE GEORGE, N.Y. 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