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Show IIIS 0 n a Liberalized standard deduction, personal exemption credit, housing hous-ing creditthese are some of the changes on the 1075 tax return that will mean less taxes for the majority of taxpayers. Take the change in the standard deduction. On last year's return, taxpayers were limited to 1C percent per-cent of adjusted gross income to a maximum of $2,000. This year the percentage has been increased to 16 percent with a maximum of $2,600 for a married couple filing jointly, or $2,300 for a single person per-son ($1,300 for a married person filing separately). Many taxpayers who have always itemized and filed the 1040 form may find it to their advantage advan-tage to use the simpler Form 1040A this year and take the standard stan-dard deduction. , It's a good idea to work out the tax liability both by itemizing and by taking the standard deduction. While itnuy take a little longer to go through the process twice, it just may mean saving a considerable amount. Here's an example which shows how it can be to the taxpayers' tax-payers' advantage to use the standard deduction. Mr. and Mrs.. T. have itemized item-ized deductions for medical costs, charitable contributions, interest payments, etc., totaling $2,350 on an adjusted gross income in-come of $20,000. While 16 percent per-cent of their adjusted gross income in-come is $3,200, or more than the maximum standard deduction of $2,600, they would still save $250 by filing die short 1040A form and taking the standard deduction. And they might even save themselves them-selves the cost of a returns preparer. pre-parer. In addition to the increase . in the standard deduction, another new change for. 1975 is the low income allowance which has been raised. This increase is reflected reflec-ted in revised tax tables which now have a ceiling 0f $15,000. . Last year only; taxpayers who earned $10,000 or less could use the tables. ,' Because of the clianue: m the - v V . V -1 -; .Xttta V V,- .,,,.,, " i 5 .'it XI ' i M 1' 1 f V i low income allowance, the filing requirements for individuals have also been rt'visod, for example, ex-ample, last yuar a single taxpayer tax-payer was required to file a return re-turn if earnings were $2,050 or higher; now the filing requirement require-ment fur a single individual is $2,350. Whether a jierson is required re-quired to file or not, however, if tuxes were withheld, a return should 1)0 filed to claim any refund re-fund which may be due. Speaking about refunds, keep in mind that early filers get their refunds quickest. Taxpayers who file their returns in January can expect' a refund, if one is due, in four tu five weeks, while the late, close to the April 15th deadline, filers may have to wait as long as eight weeks for a refund check. So it makes good sense to get started gathering records and documents together earlylike now in order to get an early start filing your return. Another change for filers is that eachtaxpayer with a tax liability lia-bility can claim a $30 credit for each dependent and personal exemption. ex-emption. Keep in mind, though, that this credit does not apply to the exemptions for age or blindness. blind-ness. Therefore, for a m irried couple with two children, a credit cre-dit of $ 120 could be claimed on a joint return. This provision, as most of the others, has been enacted la this year only. Another credit which may benefit many low income families is the earned income credit.Spe-cii'icaliy, credit.Spe-cii'icaliy, it applies to taxpayers with dependents and adjusted gross income (or earned income, if greater) under 5 3,000. Tiie maximum credit is 10 percent of a worker's first $4,000 of earned income. Above $4,000 the credit is reduced by an amount, equal to 10 percent-of the taxpayers adjusted gross income. This is how it works. Mr. and Mrs. A. have adjusted gross income of $6,500. ' Their earned income credit is $150, computed by subtracting 10 percent per-cent of the amount of income . .uijij mi- -UM i iWprnriTMu, . - ,fin i Sailnr Wine IRS Returns Ask VUIIVI I 9 1 1 1 W Commendation Orem-Ceneva Times January 8, 1976 LEROY WYCKOFF, United Stated Navy, is shown receiving a commendation from the commanding officer of Attack Squadron 105, Commander John E. Carpenter. Tu.,, are aboard ship and will depart for a Mediterranean Cruise in the near future. over $4,000 from the maximum credit of $400. Even if Mr. and Mrs. A. had no tax liability, they would receive a check for the $150. The earned income credit may be claimed bv those who have no tax liability if the other conditions condi-tions are met. So people who may not otherwise be required to file a return should do so to get a check for the earned income credit, even if no income tax had been withheld. Mention of checks may bring to mind las year's rebate and the one-time special $50 payment to social security recipients. Where do they fit on this year's Federal Fed-eral return? The answer is 'nowhere." 'no-where." Neither of those checks are considered income by the IRS and so are not taxable. :. There's one more credit to consider: The housing credit. This credit applies only to those taxpayers who bought certain newly constructed homes last year. A home built before March 26, 1975, which had never been occupied, is eleigible for the credit. cre-dit. The other conditions which mast be met are: --the house must be a principal princi-pal residence; the residence must be acquired ac-quired and occupied as a principal princi-pal residence after March 12, 1975, and before January 1, 1977; the taxpayer must enter into a binding purchase contract before be-fore January 1, 1976; --except in the case of self-construction, self-construction, the taxpayers must attach to their return, certification certifica-tion by the seller that the purchase pur-chase price is the lowest price at which the residence was offered of-fered for sale since February 28, 1975. An individual who meets all the tests may claim a credit of 5 percent per-cent of tiie purchase price, up to a maximum of 82,000. Another tax break dealing with homeowners isthe provision that the seller ofanold principal residence res-idence now has 18, rather than PR2 Allen LeRoyWyckoff,USN has been selected for a Sailor of the Month. In his citation it was stilted that his performance as shop supervisor for the Aircrew Air-crew Survival Equipment Branch of the Aircraft Division lias been outstanding in all respects. He consistently demonstrates a willingness will-ingness to supervise and execute all work requirements thoroughly and efficiently. His professional knowledge, devotion to duty and keen interest are extremel beneficial to the squadron, it was stated that through his exemplary initiative, congeniality and performance, per-formance, lie had earned the respect re-spect and admiration of his shipmates ship-mates and sujjeriors alike. The Wyckoff family in Orem consists of Mrs. Wyckoff (Billie) and daughters Michelle, age 9 12, and Becky, 8. Both girls attend Geneva Elementary School. The family lives at 292 North 1030 West where Mr. Wyckoff will join them when his time in the navy is up in two more years. 12 months, as in the past, to purchase pur-chase a new principal residence, to defer recognition of a tax gain. This is a Presidential Election Elec-tion year and with elections coming com-ing up, taxpayers should be aware that the maximum tax credit for contributions to candidates for public office has been increased to 825 per taxpayer ($50 for a joint return). Also, the maximum deduction for contributions to candidates has been hiked to $100 (8200 on a joint return). The IRS is making it easier for taxpayers to file the shorter Form 1040A by automatically sending the 1040A package, complete com-plete with instructions, to those taxpayers who took the standard deduction last year but did not use the short form. Taxpayers will receive a tax package through the mail during the first week in January. In the package, taxpayers tax-payers usually will find everything every-thing they need to complete the 1975 return. rrrrriq r"") irr- ym V: . (I- U ' nn i 3 W r- m 'Y. 'X. V ? N BUYER SPECIAL With the purchase of 30yds. of Carpet or Linoleum Installed You Receive a 000R MIRROR r 1 fjM ! Li) l! A J V t, 1 1 OFF f I on any paint purchased I i & m. Vi$;rt- -QT$$W " '' m.M ill r j? MHIHiHHil if & '4- ' ' """ " "sv""- hJM. . , . ? -;,- ' D DC an ATI NO Drop by and see how much you can save on your Carpet or Linoleum . No job too large or too small .' ''7 ti...;. ', J' it iJfK --,,--. .., Vimn-.- . u Residence Questions Individual Internal Revenue Service (IIS) taxpayer returns for 1975 include questions on residence intended to provide an accurate basis for equitable distribution dis-tribution of general revenue sharing funds, according to the Office of Revenue Sharing (ORS) of the U. S. Treasury Department. Depart-ment. Such funds are returned by the Federal government to State and local general - purpose governments govern-ments under terms of Federal revenue sharing law. The amount each government receives is based, in part, on population and per capita income estimates made by the Bureau of the Census, Cen-sus, U. S. Department of Commerce. Com-merce. The new questions on the income in-come tax form are designed to identify the taxpayer's legal residence, res-idence, which may differ from his or her mailing address. Authority Auth-ority to ask the new questions is provided in Section 6017A of the Internal Revenue Code. The information from the residence res-idence questions will be used by the Bureau of the Census to make biennial population and per capita income estimates needed to insure in-sure that States and communities receive the amounts of general revenue sharing funds to which they are entitled. For this reason, rea-son, all taxpayers are urged to provide the information as an assistance as-sistance to their States and communities. com-munities. The Internal Revenue Code authorizes a fine to be imposed im-posed for failure to provide the residence data, unless reasonable reason-able cause is shown for such failure. Information provided to the Census Bureau, under law, can be published as statistical totals only, and no information about a person or individual firm may be disclosed to any person, institution, in-stitution, or government agency. This law of confidentiality under which the Bureau operates applies ap-plies also to the residence data to be collected on IRS returns. Taxpayers who have difficulty in answering the residence questions ques-tions are instructed to seek assistance as-sistance from their local government govern-ment officials or to write the Bureau of the Census, Residence Question.WashinKtonJO.C. 20233 or to call collect at 812-948-2111 between 8 a.m. and 5 p.m. (E.S.T.) Monday through Friday. (iii.ii.iuif tin kim A lover of the meadows; and of all that we behold , From this green earth; of all the mighty world Of eye, and car both what they half create, And what perceive; well pleased to recognize In Nature and the language of the sense, The anchor of my purest thoughts, the nurse, The guide, the guardian of my heart, and soul Of all my moral being." La Lec he League Meets Tonight The Advantages of Breast Feeding is the topic to be discussed dis-cussed tonight (Thursday) at the Orem La Leche League meeting. All women are invited to attend and mothers may bring their babies. The meeting will be held at 8 p.m. at the home of Mrs. Paul Clark, 1554 S. 240 E Orem. For further information, or help with nursing situations, call Mrs. Kenneth Hacking 225- 1894, or Mrs. Lilas Park 225-4309. 495 Nerth State Road Linden, Utah 785-2031 Groceries-Fresh Groceries-Fresh Produce - Gifts TV Din n erS Selected Banquet 480 Miracle Whip ut. 990 1 SOft Margarine Western Family .... 2 for 880 i Niblets Green Giant 12 oz. 3for890 k BaCOn Hormel Value Pack 1 lb $1.25 f Cltinoc f f Boxed Twinkies reg. $1.15 NOW 990 V ) Long Sandwich Loaf S2for$l.00 i Open 7 Days A Week 7:00 AM to 10:00 PM Home Delivery Case Lot Sales 785-2031 1 amid mcewe a Remember when a buck was worth a dollar? Today, a genuine Silver Dollar is worth much, much more. They're real collectors items. MUKKVOOK SUm.YISI.IMin.D Open either a new checking or savings account with a minimum deposit of $200 and we'll give you a genuine Silver Dollar to sock away in your collection. and thats not the only silver award you'll receive for banking at Wasatch FUSEE CHECKING with $100 minimum balance OPEN SATURDAYS DAILY INTEREST Walk-up Drive-up windows open Saturday morning Interest paid daily and compounded quarterly on all passbook savings Come mine . a little silver out of our vaults EB WASATCH BANKS WASATCH BANK AT UNIVERSITY MALL OREM PHONE 224-1111 OPEN SOON SANTAQUIN OFFICE PHONE 754-3216 WASATCH BANK OF PLEASANT GROVE 225 SOUTH MAIN PHONE 785-5001 MEMBERS FEDERAL DEPOSIT INSURANCE CORPORATION EACH ACCOUNT INSURED TO $40,000.00 |