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Show Income Tax Fax By Peter James Wikel Public Accountant NOn-taxable Income. Uncle Sam has made special v provisions so that the following kinds of income are not taxed. Advances that must be repaid. Alimony taxed to husband. Allotments Allot-ments and allowances received from the government. Annuity payments the part that repre- sents a return of your costs. Awards for achievements such -as Nobel Prizes, etc. Bad debts recovered in 1954, but only if the deduction for the bad debt in a prior year did not reduce your tax in that year. Board and lodging furnished to you for the sole convenience of your employer. Campaign contributions. Char-V Char-V ity. Christmas gifts. Combat pay military personnel. Compensation Compensa-tion earned by United States citizen cit-izen for services abroad while a bona fide resident of a foreign country for an uninterrupted period per-iod which includes an entire calendar cal-endar year, unless employed by Uncle Sam. Compensation up to $20,000 earned by a United States citizen for service abroad while abroad for a least 510 days in any 18 month period, unless employed em-ployed by Uncle Sam. Compensation Compen-sation for loss or damage to your property. Compensation for personal per-sonal injuries or sickness. Damages Dam-ages received. Death benefits. Disability Dis-ability benefits. Dividends received re-ceived on unmatured life insurance insur-ance policies. Dividends from mutual mu-tual insurance companies which reduce your non-deductible insurance insur-ance expenses. Estates. Federal Savings and Loan Assn. dividends on a s'O' k issued , before March 28, . Girts. -'tcnJ grant. Honorium y..a received as a retiring employee. em-ployee. Hospital benefits. Income tax refund any interest in-terest is taxed. Inheritance. Insurance Insur-ance premiums paid by your employer em-ployer on group life insurance policies. pol-icies. Interest on bonds of states, municipalities and political subdivisions sub-divisions of the U.S.A. Interest on adjusted service bonds. Life insurance proceeds paid at death of the insured. Liquidation dividends which are the return of your capital. Marriage settlements. Medical expense paid your employer, mustering mus-tering out pay. National Service life insurance payments. Parsonage furnished minister, or cash allowance in lieu of parsonage parson-age and used for a parsonage. Payments received by a widow from a deceased's employer up to $5,000. Payments received by divorced di-vorced or legally separated wife for child support. Payments from Union Welfare Funds (Sick and Accident Insurance) unless reimbursing reim-bursing for medical expenses de-- de-- ducted in prior years. Pensions and disability benefits from U. S. government to veterans and their families. Pensions under World War Adjusted Compensation Acts. Personal injury damages. Policemen's Police-men's expense allowance up to $5.00 per diem. Post allowances. Postal Savings Deposit interest on deposits made before March 1, 1942. Presents (not in lieu of compensation). com-pensation). Property damages recovered. re-covered. Railroad passes. Railroad Retirement Re-tirement Act benefits. Railroad Unemployment Insurance Act benefits. ben-efits. - Sabbatical grants from trust funds. Scholar hips, to help your education. Severance pay from the armed forces. Sick and Accident Insurance benefits, unless reim-bursings reim-bursings for medical expenses deducted de-ducted in prior years. Social Security Se-curity payments. Subsistence allowances. al-lowances. Supper money from your employer. Terminal leave pay. Tuition, r subsistence, and on-the-job train-' train-' ing received by veterans from Uncle Un-cle Sam. Unemployment benefits. Uniform Uni-form allowances. Veterans bene- fits under G. I. Bill, Disability Pay, etc. Wedding presents. Widow's pension pen-sion U. S. Government. Workman's' Work-man's' Compensation benefits. If you had any of these kinds of income in 1954, you are not required re-quired to mention them on your return or to pay any income tax on them. |