Show 1 1 Aid For Utah Taxpayers EDITORS EDITOR'S NOTE This is the first of a series of articles prepared by the Utah Association Association Association tion of CP CPAs As on saving money-saving tax tips in the preparation of the 1040 Federal Individual Income Tax Return Did you goof in figuring your our tax last year and end up paying paying paying pay pay- ing the Government more than necessary DID YOU overlook the sick- sick pay exclusion you were entitled entitled entitled en en- titled to Did Aunt Hattie finally finally finally final final- ly turn out to be a bona fide dependent entitling you to a exemption which you didn't claim Its It's not too late to 10 ask for a refund Under the year three statute of limitations you can file me an amended return for any overpayment on the 1967 tax year as well vell as for overpayment overpayment overpayment overpay overpay- ment on the 1966 and 1965 tax years according to Herbert Herbert Herbert Her Her- bert J. J Zimmerman president of the Utah Association of CPAs ASK THE Internal Revenue Service for form Its It's short and sweet and even provides three-quarters three of a page of blank space for explanation explanation explanation ex ex- of the changes in income deductions and credits for Cor which a refund is claim claim- ed New on this years year's return is the ten percent surcharge which went into effect last April 1st SINCE IT was in effect for only three-quarters three of the 1968 tax tae year the actual surcharge rate is 75 percent additional on the tax normally due on or before April 15 Many taxpayers will probably find that their withholding was not enough to cover the additional surcharge however and will have to make an additional additional additional ad ad- payment with their re re- re- re turn GENERALLY mar married r i e d couples filing a joint return will pay a smaller tax than if they file separately because of the lower tax rate used in figuring the tax due This isn't always true however If both husband and wife h had d approximately the same income and sold stock or other property which they owned jointly at a loss in 1968 they can deduct up to 2000 1000 1000 1000 1 each as a capital loss from income by filing separate returns On a joint return the maximum capital loss allowable would be 1000 for forI them both I IN THE HE EVENT EVENT that either gh r rI I husband or wife had extra extra- ordinary medical expenses in 1968 it might also be to their advantage to file separate returns Widows and widowers with witha a dependent child or children are given a tax break which is sometimes overlooked If the death occurred in 1968 the surviving surviving surviving sur sur- spouse is entitled to file me filea mea a joint return for the 1968 tax lax year THIS TIlIS NOT only results in a lower tax but in the event the dependents dependents dependents de de- de- de child or children remain entitles the survivor to use the joint return tax table in figur figuring ng his tax for two additional years in this instance for the 1969 and 1970 tax years Tests for Cor determining dependency dependency dependency de de- de- de exemptions are tricky and frequently cause confusion in the minds of oC taxpayers ACCORDING TO the IRS a dependent entitling you to a exemption must meet the following requirements a n receive more than half his support food lodging clothes from you b have less than in income during the year unless unless un un- less he is under 19 or is a full- full time student attending school or college at least five months during the year c be related to you by blood or to your wife in the event you file a joint return I I or be a member of the household household household house house- hold for the entire taxable year and d be a citizen of the United States or a resident alien SOCIAL SECURITY benefit payments are not included in determining whether a dependent dependent dependent de de- de- de pendent had an income of or more They are included in- in included included in in- however in establish establish- ing whether he was dependent on you for more than half his support In determining whether you provide more than half hall the support of a child who is a time full student disregard funds and other assistance provided by scholarships A Achild Achild Achild child who goes to school at night and works time full-time during the day does not qualify as a j student to entitle you to a dependency dependency de de- cY exemption Neither i I does enrollment in a correspondence correspondence corres corres- I school or employee employee- training program |