Newspapers / The Fieldcrest Mill Whistle … / Feb. 19, 1962, edition 1 / Page 8
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Here’s Help On Figuring Yonr Income Tax , •, j fr>-r VirvQm*tj:ill7atioil This year many Fieldcresters will overpay their federal income tax bills, simply because they’ll fail to take all the deductions to which they are entitled. The following suggestions will help you in determining the deductions which you are allowed; The greatest possibilities for savings are in the exemptions. You can claim a child under 19 or a full-time student. You may be able to claim dependent relatives. You and your brothers and sisters can take turns year to year in claiming dependent parents under cer tain conditions. Read your instructions carefully and claim all you are entitled to, even though they may not have been claim ed for withholding tax purposes. Other savings can be made if you un derstand the kinds of income that do not have to be reported. Some of these are social security, veteran’s disability com pensation, gifts, death benefits for life insurance, inherited property, including cash, unemployment compensation and accident and health insurance benefits. Also, the first $50 of cash dividends on stock is not subject to tax. Contributions that may be deducted include contributions to church. Com munity Fund, building fund campaigns for a hospital or college. The fair mark et value of clothing and furniture con tributed to a charitable organization is also deductible. The instruction book that you received from the Internal Revenue Service gives information on the various organizations that are con sidered charitable for tax purposes. Interest you paid during 1961 is de ductible. The biggest item here, gener ally, is the interest on a home mort gage. The lending agency’s monthly statement usually shows the apportion ment of the payment among principal, interest, taxes, and insurance, or the agency furnishes you with a yearly statement of the apportionment. Also, deduct carrying charges paid on an auto loan, to a finance company or even to department stores on installment purchases, up to 6% of the average monthly unpaid balances. Taxes of various kinds are deducti ble. Real estate taxes head the list. This figure is not necessarily the tot^ of the payments collected for taxes in your mortgage payment, but the actual pay ments made either directly or to your bank. Include also in your tax deduction schedule the cost of your auto and driver’s license, sales tax (A table show ing N. C. sales tax deduction guides is printed on this page), and the state tax on gasoline at 7c per gallon in North Carolina and Virginia. Ee sure to include the North Caro lina State income tax withheld from wages, as shown on the NC-2 form which you received from Fieldcrest. Add whatever amount you paid when you 8 filed your 1960 return or deduct any refund received in 1961. Medical-Dental expenses may be de ducted in part when they are unusually high. Be sure you understand that only the cost of drugs and medicines in ex cess of one per cent of your income is allowed. For example, if your income is $5000 and your medicines cost $65, you do not deduct the $65 but instead, you can deduct only $15—the amount in excess of $50 which is one per cent of your income. Add to this $15 the cost of hospitaliza tion insurance, fees paid to doctors or dentists, the cost of eyeglasses, false teeth, hearing aids, etc. From the total, subtract three per cent of your income ($150 in our example). The remainder, if any, is your allowable deduction. In your expense for medicines or drugs, do not include other items you buy at a drugstore such as cosmetics, tooth paste or toiletries. Vitamin pills, tonics, and other formulas to preserve general health are not deductible. In your medical-dental expenses, you cannot deduct hospital expenses which were paid by your hospitalization in surance. However, you can deduct the premiums you paid for hospitalization insiu-ance. Premiums paid for life in surance are not deductible. Miscellaneous is a catch-all for all other deductions you couldn’t find room for anywhere else. The IRS instruction booklet you received with your tax forms indicates the types of allowable miscellaneous deductions. Don’t overlook a possible deduction for casualty losses not covered by in surance. Working wives, widows or widowers should be careful to deter mine whether they are eligible for de ductions for child-care expenses. If you will take the time and trou ble to fill out the income tax return right the first time, it will save time and trouble later. Be careful and ac curate in filling in the details and pro viding supplementary information. If you have unusual items or compli cations you may wish to obtain avail able assistance from the Internal Rev enue Service or consult with a com petent accountant or attorney. Don’t forget to sign your name, or if it is a joint return, don’t forget to have your wife sign, too. Be sure to at tach your W-2 form from Fieldcrest and get the whole works in the mail by the Apri3 15 deadline. Use Table For N. C. Sales Tax Deduct5on The U. S. Internal Revenue Service has released a table to be used as a guide for determining the deduction for North Carolina sales tax on 1961 federal income tax returns. ^ . FAMILY SIZE Adjusted gross income Under $1,000 $1,000 under $1,500 $1,500 under $2,000 $2,000 under $2,500 $2,500 under $3,000 $3,000 under $3,500 $3,500 under $4,000 $4,000 under $4,500 $4,500 under $5,000 $5,000 under $5,500 $5,500 under $6,000 $6,000 under $6,500 $6,500 under $7,000 $7,000 under $7,500 $7,500 under $8,000 $8,000 under $8,500 $8,500 under $9,000 $9,000 under $9,500 $9,500 under $10,000 $10,000 under $11,000 $11,000 under $12,000 $12,000 under $13,000 $13,000 under $14,000 $14,000 under $15,000 $15,000 under $16,000 $16,000 under $17,000 $17,000 under $18,000 $18,000 under $19,000 $19,000 under $20,000 single 2 3 person persons persons 4 persons 5 persons 6 or more $ 13 $ 15 $ 17 $ 20 $ 22 $ 23 22 26 27 29 31 32 28 32 33 35 37 38 34 39 40 41 43 44 39 44 45 46 48 49 46 50 53 54 56 57 51 55 58 59 61 62 59 62 65 67 68 71 64 67 70 72 73 76 71 73 76 79 81 82 76 78 81 84 86 87 83 85 88 90 92 95 88 90 93 95 97 100 92 94 97 99 101 104 97 99 102 105 108 111 101 103 106 109 112 115 105 107 110 113 116 119 110 112 115 118 121 124 114 116 119 122 125 128 122 124 127 129 134 135 129 131 134 136 141 142 137 139 142 144 149 150 143 145 148 150 155 156 150 152 155 157 162 163 155 157 160 162 167 168 159 161 164 166 171 172 162 164 167 169 174 175 164 166 169 171 176 177 165 167 170 172 177 178 THE MILL whistle
The Fieldcrest Mill Whistle (Spray, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Feb. 19, 1962, edition 1
8
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