OCR Text |
Show Page SOUTH SALT LAKE NEWS 4 Tax Tips Q) Is Ihere a Form. 1010-- 1 and if so, where can I get a copy? A) The designation 1040-- 1 refers to the page number of the back of the first copy of the Form 1040 in the tax packages sent to all taxpayers this year. On it will be found general information on the new Form 1040. Other general instructions for Form 1040 continue on the back of the taxpayers copy of the 1040 and on E-all of and R-pages B-in which are found the package. The designations 1040-- 1 and 1040-- 2 were used simply for numbering and indexing purposes and do not refer to any form separate and apart from the 1040 itself. The same approach applies to other instructions in the package, which, again for indexing purposes, also have been given alphabetical and numerical designations. Q) The estimated tax forms you sent me said to watch for changes in the law. Have there been any that would affect my 1970 declaration? AT One change that affects all taxpayers is the increase in the amount allowed for personal exemptions. For the 1970 tax year, $625 should be taken for each exemption. The Tax Reform Act of 1969 increased the amount for personal exemptions from $600 to $650 effective next July 1 when the necessary adjustments will be made in withholding rates. Since the change takes place at r, the net effect will be to increase the exemption amount to $625. Also, the tax surcharge has been continued at a 5 percent annual rate for the period 2, 2, 2, mid-yea- Q) Will IRS figure the tax for you even if you end up owing tax? A) Yes. If there is tax due, you will be billed and have 30 days to make full payment. IRS can only compute the tax where the taxpayers gross income is under $5,000 which consists of wages subject to withholding and not more than $200 of dividends, interest and wages not subject to withholding, and the standard deduction is claimed. But the taxpayer computes his tax when he is claiming sick pay, moving expenses, or employee business expenses. Q) Do you have to itemize deductions to get any credit Thursday, March 26, 1970 an additional $600 exemption and therefore you are not required to file a return unless your gross income is $1,200 or over. However, if you had net earnings from of $400 o more, even if your gross income was less than $1,200, a return will have to be filed and tax paid. Q) Are union dues deducself-employm- The Queens Brunch HStealf Special Ffi Sat Kflf 4 :00. p3toI6T30jp) Miles Up Big Cottonwood Canyon 3J4 On The Way To Brighton gram. The new procedure will put dental care on a basis except for diagnostic relief of pain and treatment of infection. All other dental services will re- CTt if-- 1 s, quire prior authorization payments are to be made. Sunday (10:00 a.m. till 2:30 p.m.) MEDICAID X-ay- :301p.m. X (5 de- ductible as an employee business expense if you itemize. For more details on these expenses, check page E-- 2 of the 1040 instruction package. A) Yes, you must itemize to claim this deduction. However, you may deduct half of your medical insurance premiums up to a maximum of $150 even though your other medical expenses do not exceed 3 percent of your adjusted gross income. Q) Im over 63. Do I still have to file a tax return? A) Your age entitles you to 1905) o tible? for hospital insurance premiums paid? LODGE (Serving People Since self-employm- A) Yes, these dues are MAXFIELD f TT7 -- rTT h) n Vm I Special Rates for Parties or Clubs if Dxny Ovetlwking Cottonwood New methods of efficient, low-cohealth care must be explored to meet the needs of fam. indigent and ilies, Mr. Lindsay concluded. st low-inco- Everyone seems to think gas dryers are best-eve- n women who have the other kind. through June 2.5 or 30, 1970, percent for the tax year 1970. January' 1, 1970, Some taxpayers may also find the new provisions on income averaging and capital gains will affect their declarations. Details on these provisions and the tax surcharge may be obtained by writing your IRS district director for Publication 553 or by contacting your local IRS office. Q) Do I handle dividends from a savings and loan account the same way as other dividends? A) No, this income should be reported as interest on iine 13 of Form 1010. If your total inis over $100, list the amounts you receive on Schedule 15, Part II, and attach it to you return when you file. Q) I just sent in my return. How long will I have to wruit for my refund? A) If your return is accurate and complete, you should have your refund within 6 weeks of the date you filed. However, should your refund be delayed beyond this ieriod, wait 10 weeks before contacting IRS .about it. This will allow time for any notice to reach you about an error or omission such as a missing Social Security number, V-- 2 or one of the schedules. Q) Who can use the tax surcharge tables in the 1010 package? A) The tables should be used for determining the surcharge if your income tax is under $735. For $735 and over, multiply your tax by 10 percent to determine the surcharge you terest incoir We changed over to a gas dryer because its faster, costs less to operate and never seems Wh&jw (fa. to need fixing. Without CLQQA aacutv 5-- ow'e for 1969. See your gas appliance dealer this week. fm MOUNTAIN FUEL Hrr. rm SUPPLY COMPANY NaZufiol Goa Stwice,- For TOTAL comfort and convenience - it 's natural GAS! |