The Courier News from Blytheville, Arkansas on January 21, 1955 · Page 3
Get access to this page with a Free Trial

The Courier News from Blytheville, Arkansas · Page 3

Blytheville, Arkansas
Issue Date:
Friday, January 21, 1955
Page 3
Start Free Trial

FRIDAY, JANUARY 3t, 19W BLYTHEVTLLE (ARK.V COURIER NEWS PAOf THRM Your Income Tax-5 Some Income Untaxed By FRANK O'BRIEN AP Newsfeaturw The new Lax law added some ways you can get part of your income out of the tax collector's reach by excluding it from your taxable income. The new law lets you exclude from your taxable income part or ail income you get as retirement- type benefits, sick pay and dividends, in addition there are new provisions of dollar-and-ccnt interest to scholars supported on grants, to parsons and to policemen. Possibly the biggest tax saving to the most people under the new exclusions will result from provisions for setting part of annuity or pension income aside tax free. This applies to anyone who has annuity-type income regardless of age or whether he is formally retired from business. There are 13!« million persons in the United States over 65, plus, millions of younger persons, with annuity income—nearly one third of the taxypaynig individuals in the country. Two general rules apply in excluding this type of income: 1. You have the right to recover, tax free, from your annuity or pensions benefits as much as you have invested or paid into your benefit plan. (This doesn't mean you can exclude payments you may be making now toward future retirement benefits. You have to be getting the benefits now. And if you are, you may exclude from this benefit income an amount equal to what you have paid in the past toward it.) 2. Also in general, you may not.exclude from your taxable Income any part of retirement income if you did not bear part of the cost. But if you did bear part of the cost, even if you made no direct contributions, if you were taxed for part or all of your employer's payments to the plan. You can usually get your cost figures from your former employer. You will find a new schedule "E," on page 2 of form 1040, to enter your exclusion tax credit you may have. In working out your exclusions and credits, refer to the instruction booklet furnished with your return form and—since this is a complex matter—don't hesitate to call on your local internal revenue service office for help if you get confused. Sick Pay— The 1964 tax law allows a new typ"e of exclusion from your taxable income for pay you receive as wages while you are off work due to sickness or injury. There are some limitations. Sickness includes sickness during pregnancy which incapacitates you to work. The revenue service has not yet ruled definitely, however, on how it will treat maternity leave. It is possible that all paid maternity leave may be excluded from your taxable income. Most sick pay plans fall into two groups—those of which the cost is borne by the employer and those financed by contributions of the employe. The law makes different provisions for these: 1. The amount of sick pay you exclude from taxable income may not exceed a weekly rate of $100 if it is received ' under a plan financed by your employer. But no part of your pay for the first seven calendar days of sickness or injury may be excluded unless you are hospitalized for at least one day at any time during your illness. If your sick pay does not exceed $100 a week, and you are hospitalized, the entire amount may be excluded from your taxable income. But if you are paid at a rate In excess of $100 a week the excludable amount may be determined by a formula given on page 6 of the instructions, 2. These limitations do not apply when you pay for sickness or injury is entirely attributable lo your own contributions to a plan. In this case, the entire amount may be excluded. Yoii will find a place at line 3 on page 1 of form 1040, or at line 12 of form 1040A to enter your sick pay exclusion. Attach a statement to your return explaining the exclusions on a joint return. It is possible that you employer did not withhold your income tax on excludable sick pay you had during 1954.) But it is still necessary for you to show the amount of your sick pay, in order to cut your taxable income down to the amount on which taxes have been paid. If you do not show your sick pay, you might get billed for taxes you do, not owe. Accident and health benefits- Payments to you , direct or indirect, under accident or health plans may be excluded from your taxable income when paid to cover the costs of medical cafe for you, your wife or husband, and your dependents. Dividends—with limitations noted below, you can exclude from your taxable income up to 50 of income, each can exclude dividends up to $50. You will find a new schedule "J," at the top of page 4 of form 1040, where you work out your dividend enter your taxable income from dividends (dividend income less the portion you can exclude) on line 10 as "other income". Dividends rccived any time in REUEF AT LAST ForYourCOUGH If a common coH left yo*i with a couph thai has hung on for days and days net quick. It is dangerous to delay. Chronic bronchitis may develop. Get a large boitlc of Crcomulsion and take as directed. Creomulsion soothes raw throat ami chest membranes, goes into the bronchial system to help loosen and expel germy phlegm, mildly relaxes systemk tension and aids nature fight the cause of irritation. Use Crcomulsion and get wonderful relief at last. Creomufeion rs guaranteed to please you or druggist refunds money. CREOMUL'SION n*i-m Co«I<n, Oml Co!*, Ae.te Btomhitii ANOTHER DREIFUS SCOOP! 8 Piece Crystal Glass TV" HOSPITALITY SNACK SERVICE All for Only 99 ONE SET PM CUSTOMER Pttfcd for coffM and tondwkh«il Cup won't d!d*l 4 trap, 4 wpt... oM for jvM 99* ««npl«tii DHEIFIIS Mi!i!l llriiilns W Wiiiir Iliiimmiils :wi wi: ST MAI, 1954 may be counted for the dividend exclusion. (For the tax credit on dividends, w> be discussed in the next article, you may count only dividends received after July 31. 1954.) You may not count toward dividend exclusions any dividends received from a number of organizations detailed under the heading of "dividends" on page 7 of the instructions that came with your return. The new tax Jaw ifets you exclude payments under a scholarship or fellowship in must cases. It also allows parsons to exclude the rental value of a parsonage supplied to them, as did the old law, and in addition allows rental casli allowances to be excluded. The cash allowance may be excluded to the extent it is used, to pay rent or purchase a home. The new law gave policeman the right to exclude from ther taxable income any subsistence allowance provided to them by law, up to $5 a day. In addition, the new law preserves previsous provisions alowing life insurance death payments, gifts and inheritances to be excluded from your taxable income. It limits the exclusion for death payments from an employer to 55,000 for the death of any one employe. Box at the right of page 6 of the instructions lists other exclusions. Next: Tax credits. 50-Man Delegation for US BANGKOK (/Pi — The United States will send a 50-member dele- TOO SEXY FOR BRITISH — Avis Scott (above), TV announcer, wears type of gown which is reported to have cost her job with BBC. A BBC spokesman said Miss Scott, who is 29, had the status of guest announcer and no programs are in offing for her. She said she thought she was fired because she was "to sexy for the job." IAP Wlrephoto via radio from London) Ike Signs New Narcotics Law WASHINGTON I/PI — President Eisenhower has signed a bill tightening the narcotics enforcement laws and plugging a loophole inadvertently opened by the 1954 tax revision bill. The 1954 law struck from the statutes most of the penalties for tax violations in narcotics traffic. These penalties had been used mainly to halt illegal drug traffic. The new law restores mandatory gallon and staff to the Manila Pact j penalties for violating the tax sec- conference opening here Feb. 23. tions. THEATRE On W. Maw St. In Biytheville Phone 3-4621 ZM—^mm. ii» .»,n • Weekdays Show Starts 7:00 p.m., Sat., & Sun. 1:00 p.m. LAST TIMES TODAY Double Feature Tin Bluing Sagi of Untamed M«n And a Stvijt Wlldernttt! mm mm • BUSS wMinffl.m ELAINE ALSO CARTOON SATURDAY Double Feature —AND— CARYGRANI-MYRNHOY MEIVYN DOUGLAS Mr. BINDINGS BUILDS HIS , DREAM HOUSE I SHADOWS OP TOMBSTONE CARTOON & SERIAL SATURDAY OWL SHOW 11:30 p.m. ABBOTT COSKLI \ MEEJFPR.JEJCVU A AW/MR HYP* 1 BORIS KARLOFF A UNIVERSAL-INTERNATIONAL PICTURE ALSO CARTOON & SERIAL SUNDAY and MONDAY Double Feature L STORY YiE im-mm Sir —AND— » ALSO CARTOON It's Coming Soon SpuM VOLLRATH IXING BOWLS MADE TO SELL FOR 6.50 TAKE THEM HOME AT • Unbreakable • Sizes: 3 qt., VA qt., ! /4 qt. They're super tough, yet light, easy to handle. Bowls clean like magic, nest for storage. Smoothly rounded for easy, thorough mixing. Buy a set now —while they last! Jlity List B.F. Goodrich LIFE-SAVER - the Tubeiess with the Mostest It's backed by a 6-year lead in use and proof. The LIFE-SAVER not only seals punctures. It repairs punctures permanently when nail is removed. Gives patented blowout protection. And defies skids, too! Now—as for the past six years —there are more B.F.Goodrich Tubeiess Tires in use than any other make. Size 6.70-15 Instead of going flat like this .. LIFE-SAVER seals punctures permanent!/ like this! L / Al IOW Al On New Keivinalor Refrigerator Regular Price - - - $249.95 Less Your Old Ice Box 49.95 YOU PAY ONLY 199 95 • Automatic Defrost • Freezer Across Top • Full 5 Yr. Warranty • Full Length Door $ 5 00 $O25 down -" weekly CARRY FINANCi 6% Interest B.F.Goodrich FIRST IN RUBBER - FIRST IN TUBELESS 417 W. Main St. Phone 3-6331

What members have found on this page

Get access to

  • The largest online newspaper archive
  • 11,200+ newspapers from the 1700s–2000s
  • Millions of additional pages added every month

Try it free