The Courier News from Blytheville, Arkansas on January 26, 1955 · Page 7
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The Courier News from Blytheville, Arkansas · Page 7

Blytheville, Arkansas
Issue Date:
Wednesday, January 26, 1955
Page 7
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WEDNESDAY, JANUARY 26, 1955 BLYTHEVILLE (ARK.) COURIER NEWS PAGE SEVEN Your Income Tax-8 Question, of Deductions By FRANK O'BRIEN AP New»te»'ure» Once you have determined if you have any allowable employe business deductions, and, if so, how you must handle them, you are ready to decide whether to accept the standard deduction ' for personal expenses, or to Itemize. The new tax law contains some money - saving new personal deductions — including interest on installment purchases, child care, contributions and medical costs. But the new law makes no change in the regulations governing the standard deduction. These are: Regardless of whether your deductible personal expenses came to 10 per cent of your adjusted gross income, you may claim 10 per cent, If that does not exceed the following dollar limits. On a joint return, the 10 per cent standard deduction may not exceed $1,000. On the return of married persons filing separately, the stand- dard allowance may not exceed $500 for each. _^_ On the return of all others, the standard allowance may not exceed $1,000. Itemizing your personal deductions (and remember that these may include some buslness-cfcn- connected employe expenses you could not deduct from your gross Income) may do the following for you: 1. It may allow you to claim more than 10 per cent of your adjusted gross Income, since itemizing removes the 10 per cent limit. 3. It may let you claim more than the dollar limits set on the standard allowance, since itemizing removes the dollar limits. , Consequently, if by itemizing your personal deductions you can exceed either or both, of these limitations you will save money by Itemizing, since you will be setting aside additional income, tax free. You will find, In the instructions booklet mailed to you with your tax return forms, a section (pages 12 and 13, plus two paragraphs on page 14) on how to claim non- business deductions. A box on page 3, of form 1040 provides space to enter your itemized deductions. Figure your deductions out on separate worksheets, and attach worksheets to your return where necessary to snow supporting details. But do not attach your receipts, bills, etc. to the return. Keep these among your records as proof of the honesty of your return, should it ever be questioned. In general, you may deduct from your taxable income (within dollar and other limits explained here and in the instructions) amounts you paid in 1954 for: Contributions (to organizations listed on page 12 of the Instructions). Interest (allowable types of interest listed on page 12). Medical, denta! and pharmaceutical costs (listed on page 13). Child care, and care of the disabled. A miscellany of other coats, including employe expenses not deductible among your business-connected costs, and periodic alimony and separate maintenance payments. Also, you may deduct for losses through damage or destruction of your property by fire, automobile accident, shipwreck, or the forces of nature. Limitations are set out on pages 12 and 13 of the Instructions. There are five major new non- business deduction provisions In the new tax law, which you may be able to use to save some tax money: 1. Contributions — formerly, you were limited to 20 per cent of your gross income. The new law lets you claim 30 per cent, if a third ol what you claim k for contributions (gifts, including church assessments) to: Churches, a convention or association of churches, and tax- exempt educational institutions and hospitals. (Educational institutions and hospitals operated by cities, states, or ,the federal or other governments can qualify.) To qualify for the extra 10 per cent (or any part of it) compute your contributions deduction like this: First claim up to 10 per cent of your adjusted gross income for your contributions to the special, limited list given above. Your additional contributions (including any others to the special group of institutions) may add up to a maximum of 20 per cent of your adjusted gross Income. 2. Interest — Formerly, you could not claim as Interest the charges on Installment purchases which were not specifically identified on your bill as interest. You may now do so, up to a maximum of 6 per cent of your average unpaid monthly balance You can get your average unpaid monthly balance by adding up your unpaid balance at the end of each month through the year, and dividing by 12. Your installment charge interest deduction may equal 6 per cent of the result. 3. Medical .dental and pharmaceutical costs — You formerly could deduct only the part of these costs that exceeded 5 per cent of your adjusted gross income, with certain dollar limits and no special provision about pharmaceutical costs. Under the new law: 1. You may begin deducting your medical and dental costs al the point where they exceed 3 per cent of your adjusted gross in come. Persons 65 or over may disregard this 3 per cent rule. 2. But you may include your pharmaceutical costs — medicines and drugs — among your medical and dental bills only after they exceed 1 per cent of your adjusted gross income. This does apply to persons 85 or over. Medical and dental bills may include the costs of such things as artificial teeth, medical and surgical braces, and the like. 3. Your medical, dental and pharmaceutical deductions may not exceed $2,500 for each exemption you claim (not including exemptions for age or blindness) with these top limits: 4. Heads of household, surviving widows and widowers qualified to file a joint return or to calculate their lax as though it were a joint return, and couples filing a Joint return, may claim up to $10,000 Others may not claim more than $5,000. The new law lets you claim as a deduction the medical expenses of a person who died In 1954, even If the bills were not paid during the year, provided they are paid . Pennzoil Z-7 F.or the first time ... a motor oil that UNLOCKS HORSEPOWER! You actually FEEL the difference behind the wheel. Your first crankciM nil proves thin is » NEW KIND of motor oil. EXCLUSIVELY AT ANDY'S AUTO SERVICE Ash and 2nd SEAT COVER SALE Fiber - $9.95 - Plastic - $13.95 (Price does not Include installation) Seat covers tailor made for all truck! it can GILBERT'S AUTO UPHOLSTERY Hiway 61 N. Ph. 3-6742 CAMERA CENTER • Flash Bulbs • Color Film • Polaroid Film • Movie Film i • We have Cameras and Projectors for rent. BARNEY'S DRUG STORE 2006 W. Main Ph. 3-3647 PICKARD'S GROCERY & MARKET • Fresh Fruit & Produce • Fresh Dressed Poultry I The Finest in Beef, Veal, Lamb &Pork Nationally Advertised & Fancy Groceries 2-2043 Call In } De Come In 1044 Chick out of the deceased person's estate within one year after death and that they are not used to reduce any federal estate tax. 4. Care of children and the disabled — Any woman, (with special limits for married women) * or a widower (Including men divorced or legally separated under a decree who have not remarried) may claim a deduction up to $600 for the care of children and others (as outlined below) while the taxpayer Is working or seeking work. The deduction may be claimed for: A child or stepchild under the age of 12, of the taxpayer; or a person, regardless of age, who is mentally or physically incapable of caring for himself. But the deduction for the care ol these may be claimed only if the taxpayer is entitled to claim an exemption for them. For married women the deduction is allowed only if she files a joint return with her husband, and It must be reduced by the amount their adjusted gross Income exceeds $4,500. 5, The old tax law lets you deduct from your' taxable income any periodic amounts you pay as alimony or separate maintenance, under a court decree of divorce or separate maintenance. The new law permits — but on separate returns only — the same deductions, even though the payments are not made under a court decree, provided they are made under a written agreement signed after Aug. 16, 1954. It also permits — also on separate returns only — deductions for payments made under a decree for support entered after March 1, 1954. The husband may deduct under these new provisions only when his payments are required to be Included in his wife's income. You may not deduct lump-sum settlements, or payments specifically for the support of minor children. And any such payments by a husband need not be included In the wife's income. {NEXT( Other Income) The Morehead planetarium, at the University of North Carolina, In Chapel Hill, is the only planetarium on a college campus. PET PROBLEM—Little Brace Duggan, S, of Seattle, Wash., Is mighty proud of his pet duck and pet dog. The Mallard duck, named George, and Smokey, the pooch, roam Seattle suburbs chasing cats and running after automobiles. DYESS NEWS By Mn. J. L. Jacobi Mr. and Mrs. Austin Chapman were supper guests of Mr. and Mrs. J. O. Craig at Trumann Sunday night. William Jacobs and Boy Jones of Dyess and T. L. Preels of Whitton were in Memphis on business Tuesday. Mr. ana Mrs. James Jacobs and son, Jimmy, of Memphis called at the home of his parent* Wednesday. S/Sgt. and Mrs. Warnuel Hargraves left Thursday for Greenville, s. C., after several days visit here with his parents, Mr. and Mrs. Warner Hargraves. Several from Dyess attended the opening of the finishing plant at Osceola Thursday. Mr .and Mrs. William Jacobs a»d son. Ronnie, spent Sunday with the J. L. Jacobs family. S/Sgt. and Mrs. Bobby Dallas ol Phoenix, Ariz., are here visiting his parents and other relatives. From here they will go to Panama City, Pla. Mr. and Mrs. Calvin Dallas and daughters of Portageville, Mo., and Muriel Dallas and daughter, Jeanie, of Memphis were weekend guests in the Fred Dallas' home. Mr. and Mrs. Junior Price and children, of Laporte.'Ind., are expected this coming wekend to visit her parents, Mr. and Mrs Bill Sornson. Mrs. R, R. Holland was in Bly- thevilie on business Saturday. The Rev. W. W. Peterson and A. T. Edwards were business callers in Jonesboro Saturday. Mrs. Opal Fox of Memphis spent the weekend here with friends. Miss Harilean Hall of West Memphis spent the weekend here as guests of her parents, Mr. and Mrs. Emery Hall. Mr. and Mrs. P. B. Wood were in Blytheville Friday- afternoon. Mrs. Austin Chapman spent Wednesday and Thursday in Osceola as guest of Mrs. Jamerson. Mr. and Mrs. Calvin Carr and children were in Trumann last weekend a« guests of his brother. Pun-is Carr .and family. His mother, Mrs. John Sodon, returned home with them for a visit. Miss Juanlta Rider spent Saturday in Memphis. Her sister, Mis«j Ottis Rider, of Memphis returned home with her for the weekend. Mr. and Mm. Russell Clifton and Mrs. Tom Anderson made a brief visit in the J. L. Jacobs home Sunday afternoon. J. T. and Odcll Dunkln of Shatter, Calif., and Mr. and Mrs. James Jacobs and sun, Jimmy, of Memphis spent the weekend here us guests of Mr. and Mrs. J. L. Jacobs. Bondsville Parent-Teacher Asso- ciation is sponsoring, a fish supper Feb. 11 at the school. Mr. and Mrs. Vernon Butler and children visited her parents, Mr. and Mrs. Fred Dallas, Sunday. More lips say Seagram's TCroum than any other brand /t'j the favorite of millions . . . by millions of bottles V? hen any product enjoys the popularity that has belonged to 7 Crown for so long, there hae to be good reason. Ever taste 7 Crown? Then you know what the reason is! For, once you taste Seagram'fi 7 Crown...that name is bound to remain there every Lime you aek for whiskey. Say and be SEAGRAM-DISTILLERS COMPANY, NEW YORK CITY. BLENDED WHISKEY. 86.8 PROOF. 65% SRAM NEUTRAL SPIRITS. new/ zip to Dynaflom/* and better gas mileage to boot! A his is s is something you really ought to try. Even though you may be familiar with earlier versions of Dynaflow Drive—either from personal experience or from hearsay —you owe it to yourself to press the pedal of a 1955 Buick with Variable Pitch Dynaflow. Just as simple as ever to operate—easier, in fact, with the new positioning of the lever. Just as smooth as ever, with nary a lag, halt or hesitation throughout the speed range. Jjut brother!—hang on to your hat when you call for action! Because that's what you get, instantly. Because twenty power blades inside the very heart of this wondrous automatic transmission switch their pitch for getaway performance — much like the airplane's propeller is angled for take-off. It's as simple as that-but far more thrilling than words can tell. And it's a big boon to your gasoline money, too. For, just as the plane's propeller changes pitch aloft for greater fuel efficiency in cruising, so the Dynaflow "propellers" change pitch to deliver a lot more miles per gallon in normal driving and cruising. Come in and try it-this week. You'll find it harnessed to the highest V8 horse- powers in Buick history — and housed in the bold new styling that says Buick and nothing but. *D)»aftow Drive is standard on Roadtriailer, optional tt txtrt cost on other Series. •* -K Thrill of the year Buick • WHIN MTTER AUTOMOBIIH ARE BUILT lUICK Will MUD THIM < IANGSTON-Me WATERS BUICK CO. Walnut & Broadway 24 Hour Service Dial 3-4553

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