THURSDAY, APRIL I, IMJ IS
j —STATE INCOME TAX FACTS —
North Carolina Individual Tax Returns
" j Remember to mail
J ' (This is one of a series of articles «««* before
I prepared by the Committee on APRIL 15
: State Taxation, North Carolina
Association of Certified Public Ac
countants, in co operation with the
North Carolina Department of HB Wjflß..
I Revenue.) JBM|
f
1 Military Income Taxable
When President Eisenhower de
clared the end of the Korean War
as of January 31, 1955, the mili
tary income of North Carolina
legal residents serving in the
armed forces again became subject
to the North Carolina income tax
The North Carolina Revenue
Act provided that military in
come received during World War
II for active service in the armed
forces of the United States was
exempt from the North Carolina
income tax. By administrative in
, terpretation, the t Commissioner pf
Revenue extended this exemption
to cover military income received
during the Korean conflict.
The original exemption of mili
tary income expired with the ter
\mination of World War II by Act
o? Congress and the President on
October 19, 1951. The administra
tive extension of this® exemption
expired with the termination of
the Korean War by presidential
proclamation effective January
31, 1955.
For periods after January 31,
1955, including the entire taxable
year 1956, therefore, military in
come is taxable to legal residents
of North Carolina. I
The following statements deal
ing with *he legal residents, taxa
ble income and deductions of a
serviceman or his wife are based
upon interpretations of the statu
tes as furnished to the .North
Carolina Association of CPAs by
the North Carolina Department
of Revenue.)
Definition of “Legal Resident”
For the purpose of reporting
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. home * A
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I your home. Oliver McMahan is
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I having had a course in this line
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| work at Black Mtn. State Hospi-
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j We will be glad to give an es
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Z Pensacola, N. C.
Retail Outlets at Nursery or Deyton Farm Supply
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i> • * **** ** *' *'
’ y* ' 1 9
*
military income to North Carolina,
the term "legal resident” means
an individual who was domiciled
in this State prior to entering the
1 armed forces, who regards this
' State as his state of legal resi-j
' dence while in the armed forces, I
' and who intends to return to this
! State upon his discharge. 1
To be- a citizen of the United
States, an individual must have
residency in one of the 48 states,
i
the District of Columbia, or the
Federal territories.
*An individual is presumed to be
a' resfdeht W North Carolina HTfe
was a resident of this State at the
time he entered military service
unless he has, through - proper
legal means, established residen
cy in some other state or territory.
A serviceman who is a legal re
sident of some other state is not
required to report his military in
come to North Carolina, if he is
present in this State by virtue of
military orders assigning him to
a post or station within this State.
In the case of a non-resident
serviceman who has purchased a
home near one of the military
bases in North Carolina, the De-
I partment of -Revenue has ruled
that the act of buying a home
does not in Itself make him u
North Carolina resident and
by liable for the North
income tax on his military income.
By the same token, a North Caro
lina resident who has purchased
a home near a military base in'
some other state would not- by
that act alone be considered no
longer a resident of North Caro-
Happy Khmer New Year.
All Our Stock is j
State Inspected j
iina.
Servicemen's Wives
Tfto legal residence of a wife
folljjfara that of her husband, and
the wife of a serviceman who is
himself a legal resident of North
Carolina on active duty is requir
ed by the Department to report j
Income wherever earned, as she
is by law a legal resident of North
Carolina even * though her home
may have been in another state
and she was married in another
state and has never lived within
the geographical boundaries of
North Carolina. She might, how
ever, be entitled to a tax credit
in the event that her income is al
•so taxed by the state in. which
| earned. This tax credit will be 1
discussed in the next article in
j this series.
Career Army Personnel
The fact that an individual
may be a “twenty-year man” or
a “thirty-year man” does not re
lieve him of the responsibility of
filing North Carolina indame tax
returns if he,, is a legal resident of
this State. His absence for the
full period of his service would
not in itself make him a non-re-1
sklent of North Carolina. Only by
establishing legal residency m
some other state through legal
means and by Clearly abandoning
legal residency in North Carolina
would he be relieved of' the re
quirement to file income tax ” re
turns in North Carolina.
Types of Taxable and Non-
Taxable Service Income
Military income which must be
reported to North Carolina by
legal residents includes base pay,
longevity, flight pay, foreign ser
vice pay, submarine pay, jump
pay, re-enlistment bonus, special
incentive pay for medical, den
tal, and veterinary officers and
other special pay for incentive or
hazardous duty.
Amounts received as officers’
and enlisted men’s, subsistence
and quarters allowances, family
allowances under Servicemen’s
Dependents Allowance Act, mov
ing allowances, and m.ustering
out pay are not subject to the
North Carolina income tax.
Special Military Deductions
For both regular and reserve
military, a deduction from income
is allowed f.or the cost of insignia,
swords, gold braid on the caps
of qualified officers, and the cost
of altering uniforms necessitated
by change of rank.
For National Guard and reserve
members only, a deduction is al
lowed for the unreimbursed cost l
of uniforms and their cleaning
where the uniforms are required
for infrequent or occatjjonal wear
and are neither suitable nor al
lowable as substitutes for ordi
nary street clothing. Reservists
and Guardsmen may deduct, as
travel expense, the cost of the
round trip from home to a place
of encampment or annual train
ing if unreimbursed. The cost of
a one-way trip from the member’s
normal business location to an ar
mory or other place of drill is an
allowable travel deduction.
Non-Deductible Items
Full-time members of the arm-
NOTICE of SALE
THE GREAT STATE OF
NORTH CAROLINA,
County of Y*hcey
tinder and by virtue of the
power of sale contained in a cer
tain Mortgage executed by WAL
TER W.' HENSLEY dated 19
July 1956 and recorded in Yancey
County Mortgage Deed Book 43,
page 83, default having been made
in the performance of the condi
tion set forth In the Mortgage
and said Mortgage being by the
terms thereof subject to foreclos
ure, the undersigned Clerk of the
Superior Court will offer for sale
at public auction to the highest'
bidder for cash at the door of the
Courthouse* in Burnsville, North
Carolina, at Noon, on the 23rd
day of April 1957, all right, title
and Interest of Walter W. Hen
sley in the property conveyed by
said Mortgage, the same lying
and being in Pensacola Town
ship, Yancey County, North Caro
lina, consisting of two tracts of
land particularity described in a
Deed dated 4 March 1946 from
C. P. Hensley and wife, Ellen
Hensley to Walter W. Hensley,
which Deed is recorded in Yancey
County Dedd Book 96, page 488
and reference is made to said
public record for the exact de
scription of said lands.
ThWr sale will be made subject
to all outstanding and unpaid
Coiinty' ad valorem taxes. I
This the 22nd day of March 19571
lor Court, j
March 28, April 4, 11 and U
THE YANCEY RECORD t
• •.2g£;.y‘ -J I
M
9 !
i
MH9
(AHTNS) Army Pvt. Doff
Silvers, whose wife, Lillian, and
mother, Mrs. Silas Silvers, live
on Route 1, Burnsville, N.' G., re
- eently - fnmhfied—as H -'paratrmsper
’ > at *’ ort N. O---after com-
J pleting the 82nd Airborne Divis
ion's Jump School. Silvers receiv-
( ed his parachutist’s wings after
1 completing the three-week course
1 which included five training
jumps. He entered the Army' in
August 1956 and completed
training at Fort Bragg.
"drivei^Wa
4mmm ,
\y and LIVE
O Copyright iru,
WoN Otwtoy Production*
ed forces may not deduct the* cost
of uniforms, fatigues, laundry
and cleaning, or tailoring of .uni
forms, or cost of moving from
post to post even though such
cost is in excess of their allowan
ces.
Extensions of Time for Filing
There is no special provision in
the North Carolina Revenue Act
for extensions of time for ser
vicemen to file income tax re
turns. However, the Department
has indicated that it will, when
necessary, grant reasonable ex
tensions of time when a service
man-taxpayer is unable to file on
) the due date because of his mili
tary duties or location of his post
of. duty.
• —~ - - --
111 •
Who rates what for performance
and smoother riding in the low
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the answer and the proof on
the line!
First, Chevrolet won the Auto
Decathlon over every car in its
field, and over the higher priced
cars that were t&ted, too. This
| " rugged ten-way test (right, below)
showed Chevrolet was the champ
in handling ease, braking, acceler
ation, passing ability, smooth
,
m
in tne Decathlon! _.
,|w - ■
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TELEPHONE 270
burnsvii2le, n. c.
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GET YOUR SUPPLY FROM
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GREEN MOUNTAIN, [N l ~ C.
ness of ride and other driving
qualities you want in a car.
Then, Chevy won the Pure
Oil Performance Trophy at
Daytona (left, below) as “best
performing U. S. automobile.”
It’s quite a feeling to know
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You feel proud, of course. But
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BIG TRACTOR SALE
40 New Tractors, Fords 900 * 800’s. International 900%, FannaOs,
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BIG USED TRACTOR SALE
Fine selection of popular make used tractors. These tractors are new
tractor trade-in’s and have not been bought at auction soles. They
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you the name of the former owner. Ail carry a written guarantee.
Don’t delay, if you are interested in a new or used tractor at real
savings, see us before you buy.
DE AKIN S-S ANDERS, Inc.
King Street Opposite the Police Station
JOHNSON CITY, TENN. PHONE 3276
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APRIL 7
YELLOW PAGES EMBtEM MONTH
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_ °* life (April 1), Saturday Evening Post
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¥ (
Nearest Dealer
In The -- -
Yellow Pages
Western Carolina Telefbone Company
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cat-quick response of power, and
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