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Show Page 4 South Salt Lake News January 15, 1970 You and Your Taxes When you start looking around for ways to cut the 1969 Income tax bite, you shouldnt forget some personal expenses during the year - - medical payments and support furnished your children or close relatives. Many times they may exceed the standard 10 deduction allowed and reduce your taxable Income. MEDICAL EXPENSES One tax break often Ignored Is the deduction for premium payments on medical Insurance. Ordinarily medical expenses for the year arent deductible unless they add up to more than 3 of your adjusted gross Income, further, in applying this rule, payments for drugs and medicines count only to the extent that they exceed 1 of this amount. But there Is a most Important exception to this 3i rule, that You may many people forget. deduct outright half your health Insurance (but not premiums Income protection) up disability to a maximum of $150 without regard to the 3 limitation. Thus, your premium payments for medical insurance may give you a deduction even without any other medical expenses. If youll have no trouble In meeting this 3 rule this wont effect you, but If not don;t overlook this type of deduction. Medical expenses won't althe entire preways Include mium for health and accident insurance, however. You may include only the part paid for true medical insurance coverage. Whats more, the amount charged for medical insurance must be stated In the policy, or In a separate break down by the ln- - surance company, also, it must be reasonable when compared to charges for the other coverage. The " medicare part of the social security tax withheld from an employees wages, or paid on Income doesnt qualify as health Insurance or a medical but the $4 a month expense, paid for the additional and voluntary coverage by those age 65 or over, is considered payment on health Insurance. Keep In mind that you might also have some hidden medical expenses. Many schools and colleges Include a charge for medical care in their tuition fee, even though not broken down as such. Payment of this Is a deductible medical expense. Another possibility covers anyone living In a retirement home that pays an annual "living care" fee. If you can prove that part of his fee Is for the cost of providing medical care , you may also have a deductible medical expense. There is yet another possibility often overlooked In figuring the medical expense deduction. In ent some cases you may take a deduction for the medical expenses you pay for somebody else, even though you cant take a dependency deduction for them. All the law requires is that you have the necessary relationship, furnish more than half the support, and actually pay the medical bills. Say, for example, that you cant take the dependency deduction for your mother because she has $600 or more gross Income. Yet, you have contributed over half her support and paid a $200 doctor bill for her. although she cant qualify as a dependent because she has too much gross income you can treat the $200 medical expense paid as vour own. go back for a recheck before sending it In. Here Is a check list of the most common mistakes then to watch for: AMERICAN . . . Failure to elgher the husband or wife, or both to sign the AUTO PARTS return. . . . No. W-- 2 OPEN 7 BATS forms attached to sho income and . . Wrong, or no social security numbers listed. . . . Using the wrong tax table or tax rate schedule. . . .Figuring the tax due from the wrong line of the tax table or rate schedule. wlth-holdl- ng. AMERICAN AUTO PARTS 2575 South State St. SALT LAKE CITY CHECK YOUR RETURN Every year thousands of taxhave their Income tax payers returns hung up In administrative snarls merely because of simple errors or ommlssions. to guard against delay and Inconvenience do this: After you complete your return. put is aside overnight, and ARTIC CIRCLE 2810 South State FOR MUTUAL FUNDS INFORMATION Deluxe Service 466-870- 1 Delicious foods and drinks! Always the best! WEUSEHVE TS?- IT - f00tlng8 Special Orders Full Meals on phone calls PHONE American Funds & Trusts, Inc. 2465 SOUTH MAIN STREET Stocks Mutual Funds Bonds 484-94- 81 ATTENTION PARENTS! Here is an important message for you! Reading- - Spelling - Arithmetic We Can Help You Help Results Guaranteed! your child do better in school! EBRONIX LEARNING CENTER 6075 South Highland Drive Phone 277-105-1 Zip No. 84 121 Call now for free Diagnostic Testing t |