Iron County Record | 1955-01-20 | Page 2 | Tax Code Revision Favors Retirement Income

Tax Code Revision Favors Retirement Income A more liberal Interpretation of the retirement Income credit provisions of the Internal Revenue Rev-enue Code of 1954 than Is reflected re-flected In the individual income in-come tax return now being distributed dis-tributed was announced today by Commissioner of Internal Revenue, Reve-nue, T. Coleman Andrews. Accordingly, Schedule K of Form. 1040, the Individual In-come In-come Tax Return for 1954 will not produce the correct retirement income credit for certain taxpayers. taxpay-ers. Individuals affected are those " with actual retirement, income of less than $1,200, who also receive re-ceive excluded annuity or pen-' pen-' sion income and, In the case of individuals less than 75 years of age, compensation for personal services In excess of $300. It is estimated that the change will benefit approximately 100,000 taxpayers currently filing their Income tax returns for 1954 by Increasing their retirement income in-come credit. Any taxpayer who has retirement retire-ment Income of less than $1,200 (shown on line 1, Schedule K) should complete Schedule K as follows: (1) Although line 2 of the schedule states "Enter here amount shown In line 1 or $1,200 whichever is lesser," the taxpayer taxpay-er should enter $1,200 in line 2 in all cases. . (2) Although line 5 states "Balance (line 2 minus line 4)," the taxpayer should enter such balance or the amount shown in line 1, whichever is the less' er. Directors of Internal Revenue have been advised to assist taxpayers tax-payers In making the correct computation of the retirement income in-come credits. Instructions have also been issued to correct those returns that are found to have been filed in error.