Southend Reporter from Chicago, Illinois on March 10, 1977 · Page 14
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March 10, 1977

Southend Reporter from Chicago, Illinois · Page 14

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Chicago, Illinois
Issue Date:
Thursday, March 10, 1977
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Page 14
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Economist Newspaper;,, Wednesday. March 9.1977 Guide to 1976 tax reform act £! Standard deduction revi- * * sions Z* With the 1976 tax tables ~based on taxable income, * taxpayers will have to actu- * ally compute their standard ·* deduction rather than rely 'on tables with the computa- ' fion built-in. ! For 1976, the standard de- £ Suction is 16 per cent of adjusted gross income with ] minimum and maximum *· deduction ranges depending i on filing status. :,, Question 1: What is a ^·minimum standard deduc- ption? I Answer 1: The minimum ··standard deduction is actu- fally a low income allow- fance. It is the lowest deduction figure which can be * used--determined by filing * status. If the taxpayer com- ^putes 16 per cent of an ad', justed grosS income and the i result falls below this mini*mum figure, ignore the 1 computed result and take I the minimum amount. * Question 2: What is a * maximum standard deduc- ~tion? ; Answer 2: The maximum I How's Your \ Hearing? I* Chicago, 111.--A free of.* fer of special interest to r- those who hear but do 4 not understand words has ·} been announced by Bel- *· tone. A non-operating / model of the smallest * Beltone aid of its kind 5 will be ghen absolutely V free to an\one answering 't this advertisement. ·· Semi for this non-oper- linp model, pin it on and wear it in the privacv of vour own home While many people with a hearing los^ uill not recei\c -!j an\ significant benefit * from any hearing aid. tin* , non-working model will -, show \ou how tim hear- « ing help can be. and it'« * yours to keep, free. The * actual aid weigh* less than £ a third of an ounce, and ; it's all at ear le\ el. in one |C unit. ] These models are free, ·* so we suggest you write Jf-for vours now. Again, we J repeat, there is no cost, ]'; and certainly no obliga- .T tion. Thousands have all ready been mailed, so ' write today to Dept.2387 Beltone Electronics Corp., ; 310 S. Adams » Springfield, II. 62701 standard deduction is the largest deduction figure which can be used--determined by filing status. If the taxpayer computes 16 per cent of adjusted gross income and the result is larger than this maximum figure, the taxpayer must take the maximum allowable amount and ignore the computed figure. Question 3: What are the minimum and maximum standard deduction ranges for 1976 returns? Answer 3: For a single taxpayer the minimum standard deduction is $1,700 and the maximum is $2,400; married taxpayer filing jointly, 2,100 and 2,800; married taxpayer filing separately, 1,050 and 1,400 and a surviving spouse, 2,100 and 2,800. Question 4: How much of a change do these 1976 flg- ures represent as compared to 1975 standard deduction figures? Answer 4: Basically, the increase equals $100 per individual filing a return. Thls is the final segment of an eight-part series on the Tax Reform act of 1I7«. The information has been provided by the National Society of Public Accountants in Washington, O.C. Question 5: Why must taxpayers compute their standard deduction in filing a 1976 tax return? Answer 5: In 1975, taxpayers taking the standard deduction, rather than itemizing, used tables based on adjusted gross income with the standard deduction and dependency exemptions built in. The 1976 tax tables are based on taxable income with no built' in computations. Therefore, if taxpayers want the standard deduction, they have to compute it. Question I: Is there a simple, practical example of the standard deduction computation? Answer C: John and Mary Doe, filing a joint return, have adjusted gross income of $12,000. Their standard deduction would be $2,100 because 16 per cent of $12,000 equals $1,920, which falls below the minimum standard deduction allowable for their filing category. However, if John and Mary's adjusted gross income was $18,000, they would take the $2,800 standard deduction because 16 per cent of $18,000 equals $2,880--$80 above the maximum standard deduction allowable for their filing category. Question 7: Do taxpayers gain any tax advantage by computing their standard deduction rather than using tables with the computation built in? Answer 7: No. Nothing is gamed but much could be lost if the taxpayer is not ·careful. An error could cause a delay in any refund. Double check all math for accuracy. Question 8: Does everyone have to compute this standard deduction figure? Answer 8: No. In the first place, only those taxpayers who choose not to itemize are eligible for the standard deduction. Secondly, if the extra computation is con- fusing, follow the instructions and have IBS compute any tax or refund due. Question : Is there any "filing status" with special rules on taking the 16 per cent standard deduction? Answer I: Yes. Married taxpayers filing separately may have special rules to follow. If one spouse takes the 16 per cent standard deduction as opposed to the minimum or maximum limit, the other spouse must also take the 16 per cent standard deduction and not the $1,050 minimum limit (the maximum limit, of course, can never be exceeded). Question It: Is anyone prohibited from computing the standard deduction as 16 per cent_of adjusted gross income? , Answer !·: Yes. If the taxpayer can be claimed as a dependent on his or her parent's return and has dividend or interest income, ithe standard deduction is 16 per cent of "wages, salaries, tips and other emplove compensation" solely-r"div- idends" and "intersest income" musl not be included. Likewise, the minimum and maximum limits are lower. There are special instructions for individuals in this category. | Picnic permits gojrig fast despite record winter cold Even though the Chicago- land area suffered its worst winter in 104 years, requests for Cook county Forest Preserve district picnic permits have increased in 1977. At the end of February, nearly 3,000 picnic permit applications had been issued. For the same period last year, 2,664 permits had been given to persons representing groups of 25 or more, establishing an all- time record. George W. Dunne, president of the district's board of commissioners, said he is "...extremely pleased with Call, then dig, says NI-Gas By calling your local Northern Illinois Gas office before you begin digging any spring projects you can avoid damage-to underground gas company facilities. Every year a number of diggers fail to call NI-Gas for location of subsurface pipelines before breaking ground. The resulting accidents can interrupt gas service, can be dangerous and are costly. A telephone call to the utilitiy's nearest office at least 48 hours ahead of any planned excavation will bring a NI-Gas representative out to mark the locations of underground gas services or mains, if any are invnlvpd this year's record-setting pace for permit requests. "After the coldest winter in Chicago area history, the increased interest expressed in the district's popular picnic areas serves to reinforce the universal family appeal of this traditional CICERO AVE. AT 122nd ST. i Banquets up to 2,000 . £* All YOU CAM CAT AND DRINK and you gel a Gift CciliJiMlc for Coco loco's Supper Club Show Owner Come In And Look Around Or Phone outdoor pastime." Dunne added, "Public awareness of the district's natural recreational facilities has spanned all age groups and backgrounds, as indicated by this sharp increase in picnic permit applications. 3 HOCKS NOKTH Of IT. 30 ON HA1SID ST. HELD OVER ALL SEATS $ 1°° AT All MIKMMAHCIS MATINII Ol EVENINGS * Weekdays! 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At Colonial Savings, financing the home you buy or build is one of the most important services we offer. Having helped thousands of families enjoy the benefits of home ownership, we know what it takes to get the most for your hard-earned dollars. That's why we have loan experts who know the real estate marketplace, currently and for the future. And, why we insist on giving you a quick, accurate quotation. With the fairest possible terms, suited to your particular needs. There's something even more important. At Colonial, we take the time to know about you, your family and how we may be able to help you best So when it comes to financing that castle, or that cottage of your dreams, let us help make that giant step an easy one. 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