Show Telegram Gives Third of Series in Explanation of New Utah Income Tax I Editors Editor's note This is the third group of a series of questions and answers designed to explain the theman man many points of the state slate Income tax law la- which is effective this year car Others will toll follow ow daily dally Q What are arc some o of the technical terms used in the income tax law A. A The terms Include gross in income income in- in come deductions net unet income personal exemption taxable net income and credit for dependents Q Will you give examples A A. Gross income means just what tot it says the total of all income the deductions ar arc listed in the law and will include mainly for the average person his property taxes and his church and charitable con con- Subtract these deductions from the gross income and I you ou get the net Income h The personal 1000 fn exemptions arc are for a single man unless he is the head of the family Then his personal persona exemption is 2000 A married mar mar- ried ned man living with his family has a personal exemption of 2000 Q Will you use a typical case A A. Assume you ou U fi J are re a married man mai mani with one n child Your Yow ross gross inc income mc i is 2750 Your Ur taxes are 10 and your contributions arc are That leaves you a net income o of 2500 Now yo you have a personal exemption of 2000 You also have credit rC for dependent nen of Th This f leaves your net taxable taxable tax tax- able income only It is the rate is applied In In this case on this thu the rate rt w would uld be 1 Per cent SiM Q Then hS the tC amount of la tax due would be 1 i plus pus the 1 filing fee A A. A That would be true if ii you OU had no property oUse But you 8 get a further lher S reduction because ot of the pr property Pcr V tax you have paid Q Will you explain offsets A A. h hi Your ur Pr property Perty tax bill was against You have i the t right to credit this third one-third of your income tax In this C case c third one of the dues on your E That vm r would net taxable income is 33 cents leave you 67 cents on your income tax plus the 1 1 filing nUnc ice ice- icer fee or r a total of I Q But suppose the tax due on my mynet mynet mynet net taxable income had been how much credit would I get for my ray property tax A. A third One-third the computed tax or 80 Q Now if U the tax due on the net taxable income had been would I get the third one-third offset A. A No The offset cannot amount to more than the property tax paid Your offset would be leaving the tax due the state plus the filing fee ee a of 1 |