PAGE TWO BLYTHEVILLE (ARK,) COURIER NEWS TUESDAY, JANUARY 25, 19SB Your Income Tax-7 More Tax-Free Expenses By FRANK O'BRIEN AP Newsfeature* What can I deduct? Where do I do it? How much? Under what circumstances? These are the perennials of income taxpaying time. This year, you will be, filling your income tax return under a brand new law that allows some important new tax cutting deductions— for around town expenses of employee, for soil conservation expenses of farmers, and among personal deductions, child care, ions and medical costs. contribut- deductions are still All previous permitted. As always, you will get the biggest tax benefit from deductions if you understand clearly how the tax law groups them. In the new law, as in the old, there are three main groups of deductions. These are: 1. Deductions of business expenses of employes. 2. Personal deductions. 3. The businessman (proprietor, partner, farmer or professional), can deduct from his profits all "ordinary and necessary" business expenses. This is done special schedules designed to show all business expenses and income, and the results are transferred to iummary schedule C of form 1040, where any losses being carried forward from previous years can be deducted from profits. Since the farmer is a businessman, he deducts for his soil and water conservation costs as a business cost, not as an employe expense. This article will deal with the business expenses of employes. The next article of this series will deal with personal deductions. Business-connected ""employe expenses are deducted, within set limits fr ( om your gross (total) income, on page l of the form 1040. Deductnig them, if any, is a step In finding your adjusted gross income, the basis for figuring your tax liability. There are two kinds of business connected deductions for employ- es. They are handled separately, and differently, and it will help you to get the full advantage of both your business-connected and personal deductions to understand clearly how to make your employe ' deductions. The two kinds of employe business-connected deductions are: 1. Employe expenses that are reimbursed, in part or in whole, by your employer. 2, Employe expenses of which no part has been repaid to you. In the first — reimbursed—class, you may include any kind of allowable deduction for employe expenses. But the amount of these deductions may not exceed the amount of expense money you received. In the second - reimbursed-class you may include, as a business connected expense, to be deducted on page 1 of form 1040, only three types of expenses. These. are expenses of travel away from home (you are "away from home" for tax purposes only when you are absent on business over night); transportation around town, and the expenses of an outside salesman. There are many other kinds of deductible employe expenses, including union dues, small tools required by your job, fees for membership in professional societies, necessary entertainment of customers, cost of safety equipment you supply, and all other "ordinary and necessary" expenses of your job. When these are reimbursed expenses, lhej- can be deducted on pajre 1 of form 1040, from your gross income, up U> the amount 5-ou were reimbursed. But when they are unreimbursed, tney must be listed among your miscellaneous, personal deductions, (unless you are an outside salesman) on page 3, where you may itemize your personal deductions. If you choose not to Itemize your personal deductions, you •have no way to deduct your un- reimbursed employe expenses other than costs of travel away from home, transportation around town, and expenses of an outside salesman.' Consequently, before you decide whether to itemize your personal deductions or take the standard personal deduction (10 per cent of your adjusted gross income), it is well to know: a) whether you have deductible employe expenses. b) if so, into what class of business-connected expenses they fall. "Transportation around town" and "expenses of an outside salesman" are the new phrases in the new tax law, in connection with business ^connected, employe expenses. Around-town transportation costs were formerly not allowed by law as deductible employe expenses; They now are. They include local bus, street car, sumvay and taxi computation with increased total fares, and the cost of operating your own car in your work (bul not to and from home transportation costs, either in your own car or otherwise.) Salesmen who work outside their employer's place of business ("outtide salesmen.") formerly could deduct their costs only among their personal deductions (and, therefore, only if they itemized). Under the new law, sutside salesman may deduct their business-connected expenses as a business cost. An outside salesman is one who sells full time. This does not include part time salesmen, like milk delivery men, who may also do some business soliciting but whose main job is delivering. The outside salesman can deduct all his "necessary and reasonable" business costs. These include: Costs of telephone, stationery, secretarial help and entertainment of his customers, in addition to local transportation and from-home travel costs. Travel costs away from home, for salesman and for others, eludes costs of room and board. Local expenses do not include meals. You handle all your (partly or entirely) reimbursed employe expenses like this: You first add to your total wage: everything received from your employer as repayment for your business-connected expenses. Then you subtract from the tota! your actual expenses, up to the total of expense money paid to you by your employer. You cannot subtract, as a business-connected expense, more of your rei> mbursed expenses than was reimbursed. If your actual expenses were less than the expense money you received, you will come out of this MANILA NEWS By Ruth Horne Mrs. Ellen Brown, first grade teacher, was absent from school Thursday and Friday because of the death of her father, Jerry Ppe, of near Leachville. Miss Carrie Sue Haynes, first rade teacher, has been confined to her home this week suffering from a case of influenza. Margaret Copeland," farm youth exchange student from Paragould spoke to the Missco School Masters Club which met at the Mania school cafeteria last night. Superintendent Roy Ashabramier welcomed 34 school administrators among whom were John Mayes, county school supervisor; A. G. Thompson, rural school supervisor; and Roy Hall, director of public relations at Arkansas State College. Manila Future Farmers went Memphis to tour the Memphis packing Company plant Saturday. Sixty-five boys planned to make the trip accompanied by L. K. Holt, agriculture teacher, Revival services at the Manila Methodist Church will close Sunday night. The Rev. Floyd ' lines, pastor of the Piggott Methodist Church, Is preaching each night at 7:45. The Rev. Villines spoke to high school students Wednesday morning. Mrs. Bernece Bullard will begin ii class on how to fill out income Lax forms Monday morning at 9:00. The class will last for a week. Students who purchased 1955 editions of the Lion's Echo will elect an annual queen next week, Mrs. Francys Faulkner, faculty sponsor of the year book has reported. Quick Relief that Lasts! <- PILE PAIN Thorn ton-Minor Ointment is t complete formula with special ingredients to relieve itching, bum- ing, pain and reduce swelling. Goes to work instantly; lasts for hours. Proved clinic formula— ointment or suppositories, $1.00. Insist on Thornton-Minor Pile Ointment—at all drug atores. $129.95 to $189.9!!. Easy Urms. Liberal trade-in. Come in today. Adams Appliance Co. Inc. PRESCRIPTIONS fatted PltwU Hi-Way Drug Main & Division Ph. 2-2019 Hours: I a.m. to 9 p.m. • FKEE DELIVERY Tcrtane'i lot Crcom Stewart's Drug Main A Lake Ph. 2-2822 n«in: I a.m. to 14 p.m. • Dependable Service •Licensed Pharmacist At Both Stores actual expenses were income. If your more than the expense money you received, (that is, If, you were only partly reimbursed) you can deduct the remainder (your out-of-pocket expenses) among your personal expenses, if you itemize, on page 3 of form 1040. And, as stated earlier, you may also carry over to your personal deductions (If you choo«e to itemize them) all of your unreimbursed employe expenses except costs of travel away from home, around- town transportation, and all the necessary and ordinary business expenses of an outside salesman. There is no special box or schedule in the tax form to figure your employe expense deductions. You must itemize them on a separate work sheet, which you attach to your return (always keeping a copy for yourself). You subtract your permissible employe deductions from your total income( make this subtraction a part of the worksheet), and enter the result as your total wages, in item 2, on page 1 of form 1040. (NEXT: Your personal deductions.) Ancient India's Young Republic Is Five Years Old Tomorrow NEW DELHI, India (AIndia will be a five-year-old republic tomorrow—young as republics go, but old as civilizations go. Five years after India's constitution took, effect—more than two years after the granting of independence by the British—this mammoth Asian country offers the contrast of a vital, new state and an ancient, sometimes dead culture. In New Delhi, the central government is organized around a model 20th-century parliament. But in the villages most local government still centers in the "pancha- yats," "or patriarchal village elders. English remains the general working language of the government, and most literate Indians is receiving more /ind more prominence; but many Indians complain stand. They say too many words from ancient Sanskrit are being incorporated into it. The blcyie and the automobile bring modern times to the cities. The bullock cart and the pack camel keep even the basiest thoroughfares in touch with the past. New homes and factories—using the latest in architectural designs —are springing up in Indian cities and the countryside. Beside the new structures stand the countless ruins of fortress walls, palaces and tombs — mos'tly centuries-old relics of the moghuls. An Indian businessman goes to work In the latest in Western dress, or an Indian outfit modified by Western Influences. His wife clings to the filmy, wrap-around silk ssri her ancestors wore. Mm*. Chiang's Regrets WASHINGTON WJ—The American Legion Auxiliary has received word from Mme, Chiang Kai-shek that she cannot address their annual conference this week because she is unable to leave Formosa now. Caruthersville News ' B; SONNY BANDEM Miss Mary Ellen Homer, history instructor at the high school, was the speaker at the Kiwanis Club meeting on Monday evening of last week. She told of the early history of Caruthersville and Southeast Missouri. Mrs. Sam Shepard was the speaker at Tuesday night's Rotary club meeting. She spoke about the West coast of Africa and particularly the natives of Nigeria, a British crown colony. She was born in Nigeria and is wife of the pastor of the First Baptist Church of feejtostCoinfoft When COIDJ Aches and Pains Strike Take St. Joseph Aspirin for the fastest .aspirin relief possible. 200 tablets 79c; ICO, 49c; 12 tablets We. Why ever pay more? Do A. Millions Do GET TH£ KST FOR LESS CaruthtnvUle. Mr*. Luther White returned here Tuesday after spending five days In Memphis visiting In the home of her daughter, Mrs. Joseph Herbert. She went to Memphis because of an Illness of Mrs. Herbert's daughter, Mary Lou. The two-year- old girl was in rather critical condition but .is reported to be recovering satisfactorily. Mr. and Mrs. Bill Shelby and family spent Sunday of last week In Cape Olrardeau visiting with Mr. and Mrs. O. P. Smlttle, former resident of Pemiscot County. Mr. and Mrs. Edward Bitticlt recently celebrated their Mth wedding anniversary with a party «t their home. W. B. Hitchcock !• a patient »t Kennedy Veteran! Hospital IB Memphis. 'Oldat40,50,60?" -Man, You're Crazy /oriel your «•! Thotuandi ar« pWPr »t 70. Try "Dcpnlni up" with Oitrcx. CoawMtonia for wuk. rundown fedlni due *oltl> to bod j'f lick of iron which many mea mad womta nil •old." Try Osire* Tonic T»bl«« for . •lM only p«p. ib ly 50C. Attention TV Owners! W« can now offer you what you have lonr be»n waMlmf Mr.t; Picture Tube Guarantee Service For only a small yearly payment, we can [uarantee jour plctirt lube. Fhone or come by our shop and let ui explain our ratM and service. Call 3-4257 Days - 3-6704 Nights Leon Robertson's RADIO & TELEVISION SERVICE 515 E. Main Blytheville, Ark. THUNDERBIRD STYLING! Run your eye over the '55 Ford's long, low lines. Note the huge wrap-around windshield, the massive grille, the treatment of head lights and tail lamps. They're "years-ahead" styling features inspired by Ford's fabulous Thunderbird. LUXURY LOUNGE INTERIORS! Step inside. You'll see thrilling new uses of color . . . new upholsteries, many of which make their first appearance in any car interior ... a sweeping new Astra-Dial Control Panel . . . and all the other smart appointments tastefully blended into a delightful "luxury lounge" on wheels. TRIGGER-TORQUE POWER! Your Test Drive will show you the most exciting response ever in a car in Ford's field. You'll enjoy that comfortable feeling of security Ford's new Trigger-Torque power gives you in stop-and-go traffic. And you'll enjoy the added confidence of power-to-spare when passing on the open highway. You'll find this new Trigger-Torque power can actually obey your commands quicker than you can wink. AN ANGLE-POISED RIDE! You'll discover that rough roads are "velvet- cushioned," smooth roads seem to become far smoother, and all handling is of extraordinary ease. That's because Ford's advanced Ball-Joint Front Suspension brings you a new Angle-Poised Ride. But this is only the beginning of the news you'll learn when you Test Drive the '55 Ford. .. .andyou'll want to drive it home ! PHILLIPS MOTOR COMPANY Broadway & Chiekasawba Phon* 3-4433 -GREAT TV, FG*D THEATRE, WMCT, 8:?0 P.M. THURSDAY.
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