Show man aaby y deductions allowed by treasury 1 treasury I 1 on income tax every worker can claim cla I 1 m credits under the new I 1 levy I 1 by ALFRED released by bv western newspaper Nw paper union although wartime necessity demands that uncle sam colle collect ct the highest income taxes in histo history there is nothing unpatriotic in taking advantage of legitimate ways to lower your payments as provided by law tax laws are carefully written instruments in writing them congress included a list of deductions which taxpayers may claim those these deductions were included for excellent reasons and with the expectation that all taxpayers wha could honestly claim them would do so the big taxpayer usually finds it advantageous to hire an expert who is familiar with each permissible deduction the smaller taxpayer is not so likely to secure outside assistance the latter would do well to determine for himself the deductions duct ions he can make legitimately for the person who makes not more than 2000 of taxable income which means a single man earning not more than 2500 or a married man or hear beat of a family earning not more than every of deductions claimed will mean an 1040 1840 reduction in income taxes paid where aher e larger incomes are involved savings are proportionately greater the following are important deductions duct ions which will old aid the average taxpayer you can deduct license fees fee business Expense Ex pene st contributions interest Inte reit taxes all contributions for public purposes made to the united states any state city or town are deductible as are contributions to a domestic nonprofit organization operated exclusively for religious charitable literary educational or scientific purposes or tor for prevention of cruelty to children and animals church contributions include pe pew rent assessments etc organizations such as USO army and navy relief red cross community chests etc come under the charitable heading literary and educational organizations include such institutions as nonprofit colleges and schools the boy scouts voters leagues and study groups the scientific heading includes all nonpar ilsan scientific societies it Is not permissible to deduct contributions made to a bar association a medical association a prohibition hi hibi tion association political campaign committees volunteer fire companies social fraternities athletic clubs or gifts to needy friends or relatives generally speaking the taxpayer may deduct any interest paid on borrowings including business personal 1 I 1 and family debts because interest paid on behalf of a relative or friend is not a legal obligation on the taxpayer such interest is not deductible As a broad general rule the individual can deduct all taxes he personally pays to the tax collector except federal income estate and gift taxes and state and local benefit inheritance estate legacy or gift taxes federal taxes which are deduc tl ole include those on admissions dues telephone telegraph transportation auto use safety deposit boxes etc admission taxes collected at theaters and other places ot of amusement during amounted to 10 per cent A 50 cent theater ticket 1 1 which cost the customer 55 cents represents a 5 cent deduction automobile owners are entitles to deduct state and local license fees the federal use stomps stamps which cost in 1942 drivers license feo fee and state gasoline tax automobile owners may not deduct the federal gasoline tax because it Is constituted ns as a n tax on the manufacturer and not on the consumer even though it was passed along to him it Is the general rule that the taxpayer gets credit only tor for those taxes levied directly upon him for that reason state and federal taxes on cigarettes and liquor are not deductible they are stamp taxes levied oh the manufacturer or dealer the transportation taxes paid on railroad airline and other personal transportation last year Is deductible the rate was 8 5 per cent of the tare fare for the first 10 months 10 per cent for the last two months the tax on transportation of goods amounting to 3 per cent on all freight and express bills Is deductible taxes imposed by the federal government on jewelry furs and toilet ghods are not deductible they are excise taxes levied on the maker or dealer and are not collection taxes levied on the taxpayer also deductible are traveling expenses required by ones employer when such expenses are not reimbursed by anything over salary wages or commissions when your car is used partly for business and partly for private purposes deduction is allowed only for the portion used for business and then only when the driver is not reimbursed the loss on the sale of a car used partly for bust busl iness ness arid and partly for private purposes is divided similarly but only when actually sold and not when used as a trade in in addition to deducting the three cent state tax on all gasoline used in your car you can also deduct the cost of the gasoline and other supplies for business use of the machino machine dues to labor unions assessments by unions for out of work benefits but not for sick accident or death berie benefits fits cost of indemnity of fidelity bonds required by your employment and cost of tools and patterns necessitated by the type of work are deductible but only if their life is less than one year if their life is longer than one year the owner can discount depreciation only no deduction Is permitted tor for medical and dental expenses including accident and health insurance pre r unless they exceed 8 5 per cent of 0 your income any expense over 5 per cent of income and up too ton maximum of 1250 for a single person or 2500 for a family may be deducted this includes hospital bills treatment diagnosis rind and everything ery thing connected with medical and dental care |