Show Income Tax Fax By Peter James Wikel Public Accountant Must I file a federal income tax return for 1955 1055 If you arc are under tinder 65 05 and had taxable income of or more or OJ over 65 and had taxable income income in income in- in come of 1200 or more you must file flIe a federal income tax return It makes no difference whether you owe tax or not and it does docs not matter whether you are man mim woman or child as long lung as you are arc Under tinder 65 and had taxable income of at least or over 65 and had taxable of 1200 1200 or more in 1955 you are required to file fill a 1 return by April 15 15 1956 It may well be that yon you had income of less than or 1200 and income tax was withheld withheld withheld with with- held from your paychecks In Inthis Inthis Inthis this case you should file a tax return The return will show that you owe no tax and will net act as a claim for refund of the withheld tax It is always a good idea to get these returns in as soon as possible The sooner you file your return the sooner you have your refund Taxable is money or orits orits orits its equivalent in goods or services services services ser ser- vices you received This income is reduced by the cost of what you sold F For o r instance if you sold merchandise merchandise merchandise dise that cost you 1 for 2 then you have a gross income of 2 but your income would be only 1 What you received for the merchandise less what it cost you The same is true of y your you o u r services For instance J John o 0 h n taxpayer is a salesman and is away from home overnight much of oJ the time His costs of traveling traveling traveling tra tra- meals tips etc are arc deducted deducted de deducted de- de ducted from income on page one of the tax return They arc are a direct deduction from in income income income in- in come in computing his adjusted gross income They have no bearing on whether or not John uses short form 1040 tO computing ing his tax from from the tax table or takes the standard deduction or itemize his deductions Joe Taxpayer Johns John's brother is an employee He started work this year To get the job he paid an employment agency fee Joe also joined joine his union and paid an initiation fee and monthly dues Joe had to buy tools and supplies necessary to his job Joe is required by his employer and the duties of this job to purchase and maintain special uniforms and work clothing clothing clothing cloth cloth- ing which are arc not adapted to These and many other costs Joe takes as deductions on his tax return These deductions are taken on page two of the return They can be taken only if Joe files long form 1040 and itemizes his deductions The deductions are arc lost if Joe files filesa a short from 1040 form 01 or takes lakes the standard deduction Th There Thore re are arc many deductions that John Taxpayer Joe Taxpayer Taxpayer Taxpayer Tax Tax- payer and the merchant can take That's what t i these col columns columns columns col- col are about Then too some someI I kinds of income are arc not taxed Th They y will be covered in later columns Be sure to read every column Some may help you |