The Courier News from Blytheville, Arkansas on January 20, 1955 · Page 2
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The Courier News from Blytheville, Arkansas · Page 2

Blytheville, Arkansas
Issue Date:
Thursday, January 20, 1955
Page 2
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PAGE TWO BLYTHEVILLK (ARK.) COURIER NEWS THURSDAY, JANUARY M, 19B0 Your Income Tax-4 Exemption Rules Altered By FRANK O'BRIEN AP Newlfentuies, Your exemptions are the biggtst tingle tax chopping device provided by the law. The new income tax law makes it possible to claim exemptions in several circumstances formerly not allowed. , Every exemption you Have sets .•.side (exempts) 600 of your income, making it tax free. Since the amount for each exemption is so large, the rules about who may and who ..may not be claimed as an exemption are precise and rigid. But you are fully entitled to all the exemptions due you under the law. This article is aimed at telling you exactly what exemptions you may claim. There are three types of exemptions: 1. For you, and, if you file a joint return, your wife or husband. 2. For your children. 3. For others. The new 1954 tax code liberalized the rules under which children and other* may be claimed as exemptions. But let's take up the rules lor the three types of exemptions in the order listed above, because thai, is the order in which they occur on your tax form. 1. You and your spouse: The taxpayer always gets at least one exemption. If you were 65 or over during 1954, you get two exemptions for yourself. If you were 65 or over, and blind you get three exemptions. You get exactly the same exemptions for your wife, or husband, if you are filing jointly. Thus, a couple filing a joint return could get a maximum of six exemptions for themselves. Blindness, for the purpose of tax- paying, is: —Total blindness, meaning no sight at all, unable to tell light from darkness. A statement claiming total blindness must be attached to the return of the sightless. —Partial blindness sufficient for an additional exemption. This is defined as no more than 20/200 vision In the best eye with correcting lenses, or width of vision not ex- ceeding'20 degrees. Returns claiming extra exemptions for blindness when some sight exists must be accompanied by a qualified physician or a registered optometrist stating that the vision does not exceed these limits. 2. Children: You, get one exemption for each of jour children, within certain limits. Children * include step-children and icsally adopted children. One of the new tax law provisions allows you for the first time to claim foster children. The provision, aimed especially at foster children but written to include others also, is: You may claim as an exemption anyone, even if not related to you, whose home was your home and who was a member of your household, and received less than 600 income in 1954 and got over half support from you. Previously, the law limited you to claiming children as an exemption only if the child (whatever his age) had income during the tax year of less than $600 and received half his support from you. The new law liberalized this provision. Now (With restrictions to follow) you may: Claim an exemption for your child regardless of how much the child earns if he is under 19 years of age. ^r: You may also claim your child as an, exemption, even if he earns more than $600 and is 19 years old or over, if the child is a student. The restrictions: You may claim the exemption only if the child gets over half his support from you. (But you need not count the value of a scholarship as part of the child's support.) The second restriction applies to married children. They may not be claimed as exemptions when they are party to a Joint return. Also, the child must be a citizen or resident of the United States, or a resident of Canada, Mexico, the Republic of Panama, or the Canal Zone. In the case of children who are residents of the Philippines and were born to servicemen or adopted by servicemen, you will need expert personal advice. A student is defined in the tax law as a full time pupil, for at least five months of the tax year, at a regular educational instution, or a person who is engaged in on- farm training, in a program of a jtate or a political subdivision of a state, such as a county, 3. Others: On page 5 of the instructions booklet that came with your tax forms, you will find a list of persons, other than you, your wil'e or husband tind your children, who may be claimed as an exemption. The list Is complete, when taken together with the new provision noted just below It (the one aimed at foster children) allowing you to claim some persons, even if not related to you, who live in your home as a member to your household (paid servants are not members of a household). All must meet the usual dependency tests (not earn over 600, get more than half support from you, not file a joint return, and must be a, citizen or resident of the United States, or a resident of Canada, Mexico, Panama or the Canal Zone), with the following: exception, which is the final new exemptions provision. This is for a person who is supported by more than one taxpayer, but where no one taxpayer contributes more than half the support. In this case (for instance, an aged mother supported by three or four children), the new tax law provides that one of the taxpayers may claim the person supported as an exemption, if: 1. The group contributes over half the dependent's total support. EDDIE'S LIQUOR STORE 122 E. Main Phone 3-9713 Owned & Operated bj Eddie Saliba J. Each of the group could claim the person as an exemption if he contributed over half the support. 3. The person claiming the exemption contributed over 10 per cent of the dependent's support. 4. 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