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Show Page Two THE SALT LAKE TIMES FRIDAY, DECEMBER 31, 1976 IRS Outlines Changes On New Tax Laws Individual taxpayers filing tax returns for 1976 will notice several changes in the law resulting from recent passage of the Tax Reform Act of 1976, the Internal Revenue Service said. Before preparing their returns, Defend The First Amendment (continued from page 1) Many citizens of this country are not really very concerned over the various tests to which the free press has been subjected in recent years through such things as gag orders by the courts or closed meetings of public officials many times right at their own doorstep. the IRS cautioned, taxpayers should carefully read the instructions they will receive with their tax package in order to be aware of changes in the law. Preparers who 611 out their returns should also make sure they provide an Employee Identification or Social Security number on the return. The IRS also stressed that some new provisions in the law become effective on January 1, 1977, or later and, therefore, have no bearing on the filing of 1976 returns. One provision in the legislation affecting virtually everyone filing a 1976 return, the IRS said, is the general tax credit. This provides a tax credit of $35 for the taxpayer as well as for each persons listed as a dependent, or twp percent of the first $9,000 of taxable income, whichever is larger. For a family of four claiming the credit, according to the IRS, and earning in excess of $9,000 in taxable income, the two percent alternative, or $180, would exceed four times $35 or $140. The family's general tax credit, therefore, would total $180. Larger families with six or more dependents should use the $35 per dependent computation, the IRS said. Another result of the new legis- care of children or disabled dependents in order to work for a living can take a tax credit equal to 20 percent of their costs, up to a maximum credit of $400 for one dependent and $800 for two or more. Under the old rules, according to the IRS, the taxpayer was entitled to a deduction rather than a credit so that only taxpayers who itemized .deductions could benefit. In addition, the deduction had only been allowed to taxpayers The credit has working also been extended to divorced or separated parents who have custody of a child and to deserted spouses who supported a child for more than six months of 1976. Taxpayers will find that the minimum standard deduction increased to $1,700 for single persons and $2,100 for couples filing jointly. The standard deduction is 16 percent of adjusted gross income with a ceiling of $2,400 for single persons and $2,800 for couples who file joint returns. For married persons filing separately, the new maximum is $1,400, up from $1,300 in 1975, the IRS said. The retirement income credit has been liberalized in several ways and the name changed to the Tax Credit for the Elderly. First, the credit has been extended to include earned income and is therefore available to individuals age 65 or over regardless of whether they have retirement or earned income. The reduction in the credit for one-haof earnings between$l,200 and $1,700 and for all earnings over $1,700 has been eliminated as has requirement that the person must have annual earnings of $600 for 10 years prior to claiming the credit. The maximum credit has been increased to 15 percent of $2,500 for single taxpayers age 65 or over and $3,750 for couples filing jointly if both are 65 or over. There are special rules for couples in which one spouse is 65 or over and the other under 65. The maximum credit base is reduced by one-ha- lf of adjusted gross income over $7,500 for single persons and $10,-00- 0 for married filing jointly. Also, there are special rules for persons receiving public retirement income even though they are under 65. Beginning with the 1976 returns, most employees will not longer be able to exclude from income money received when absent from work because of injury or illness (i.e., a six pay exclusion). Only retirees under age 65 who are permanently and totally disabled will be able to exclude up to $5,200 per year. However, the exclusion is reduced dollar for dollar of adjusted gross income, including disability income, over $15,000. The IRS cautioned taxpayers to read the tax return instructions carefully because of the new legislation. It suggested that taxpayers take advantage of the order blank in the back of the tax packages to obtain new revised IRS publications on a variety of tax subjects. full-tim- e. And this complacency is unfortunate, because this intrusion on the Freedom of the Press, guaranteed to us by the First Amendment, should not only be treasured but defended by every free citizen. During this Bicentennial year of 1976 which is now nearing its end, so much emphasis may have been placed on the festival aspect of the nation's 200th birthday that the fact that it should have been a Festival of Freedom was almost overlooked. This entire year should have been a period in our great American history when all should have reflected on the precious freedoms given Americans more than 200 years ago freedoms, which, even though lation for 1976 returns, the IRS theatened many times, are still ours today. said, is that more individuals will Some years ago, this writer, in conducting a survey be able to claim the earned income of high school students relative to suggestions that the credit which is designed to benefit working families. press should be censored, was shocked to learn that To qualify for the credit, of up to a majority of those intelligent young men and women $400 a year, a workers total when times believed were there that income for 1976, including earned many actually be less than $8,000. must income, the press should be censored. In addition, individuals must have But in that same survey there were very few who paid more than half the cost of were willing to accept the denial of free speech. keeping up either on owned or Yet both are a part of the same freedom as rented home for themselves 19and for their child who was under years explained so well by the early Americans who of age or who was a provided that article to the Constitution which reads: student, or for their disabled child who is a dependent. Married taxCongress shall make no law respecting an establish- payers must file a return to ment of religion or prohibiting the free exercise claim the credit. joint Prior to the new legislation, for a thereof; or abridging the freedom of speech or of the to qualify for the credit, the press or the right to the people to peaceably assemble family child had to be a dependent and and to petition the government for a redress of there were no special provisions to disabled children. grievances. Unfortunately, there has been a tendency relating Here's how the earner income to separate them. credit works: An eligible working The free press, which have in America today, has family is allowed to stubtract from taxes owed 10 percent of the first withstood many tests during these past 200 years of income earned. The credit but those fights to maintain that freedom have been $4,000 is reduced proportionatley by the y by the newspaper amount of adjusted gross ncome waged almost before disappearing over profession itself. All Americans should have been and when $4,000 the family's income hits should continue to be vitally concerned. If a free press $8,000. A taxpayer whose earned can be denied, what is to prevent Free Speech from income credit exceeds the amount of taxes owed receives a check from being denied? the Government, the IRS said. The early Americans who formed this free nation Another change for 1976 returns, were concerned over a free press. They were aware of expected to benefit millions of is the liberalization of what happens when kings, governors or judges taxpayers, child care benefits. Generally, taxpayers who incur expenses for the acquire power over journalists. It was Thomas Jefferson, one of those 56 men who signed the Declamation of Independence in 1776, who wrote 11 years later, The basis of our government being the opinion of the people, the first object should be to keep that right; and were it left for me to decide whether we should have a government without newspapers, or newspapers without government, I would not hesitate a moment to prefer the latter. Jefferson had written the freedom of the press into Where thousands Virginias basic law and later led the battle for its of listeners enjoy inclusion in the Constitution. This Bicentennial year is a challenge to all to take an concert music and of offers and freedoms an our opportunity inventory news every day! citizens Defend to the First Amendment . . . for all A Mandate from History. Freedom of the Press lf low-inco- full-tim- single-handedl- e dial the LEASED GRAPEVINE All public safety vehicles will be painted lime yellow next year, if Salt Lake commissioners have their way. This week commissioners approved a request from Public Safety Commissioner Glen N. Greener to ask the Legislature for a change in the law designating colors for the vehicles. A spokesman said the lime yellow color would make the public safety vehicles more visible, particulaly at night. Commissioners in Salt Lake. City sold 4.1 acres of land this week to the Utah State Employes Credit Union for $700, 006. The sale will enable commissioners to move the e plot city's parks shops to a off Redwood Road at 3rd South and Orange Street. The 1 acres sold is East on Edison Street. at 627-15- 8 120-acr- 4-- Only one cow at a time please! The Newhouse Hotel can be a cow palace for two days, but only one cow at a time may enter. The Salt Lake City Commission last week denied a request to hold a purebred cattle show at the hotel because of health ordinances. Utah Dairy Commission Administrator, G. Kent Hendrickson, however told commissioners this week that the commission expected to bring only one cow at a time into the Florentine Room of the hotel. Hendrickson said, UI think the feeling was that we were going to bring in a whole herd and march them around. Hendrickson said the, show will be held Jan. 19, and the dairy commission would cover the floor with sawdust and spray a protective coating over the entire room. The portraits of the secretaries of state now hang in the Governors Board Room, in the Capitol. Lt. Gov. Clyde L. Miller, who also has the title of secretary of state, completed the picture hanging project just before leaving office Jan. 3. Harvard R. Hinton, deputy lieutenant governor, said he srw the pictures of all the former secretaries of state in an office vault when he first started working and thought it would be a good idea to display them around the office. year there were fewer babies born over the Christmas weekend in Salt Lake area hospitals because mothers don't want to spend Christmas Day in a hospital. But New Years Day will be another story. A nurse said labor will be induced just before the old year ends so the babies can be used as deductions for income tax purposes. According to a nurse who works with newborn babies, the reason for the lower number of Christmas" babies, is that labor is induced in fewer women. Only 19 babies were born Christmas Eve, and 26 Christmas Day, usually, there are about 50 babies born daily. This Since the U.S. Forest Service began keeping a tally in 1940, Utah's 1976-7- 7 winter ski season will go on record as the latest-startin- g date. The previous latest date for the opening of daily skiing at Alta was Dec. 9, 1962, with a little less than three feet of snow. The lack of snow isnt hurting only the ski industry. The auto body repair business also is suffering. A custom body and paint shop says business is down more than 30 percent. Were just not getting the little fender-bender- s and other work because of the good weather." |