PAGE TWO
-STATE INCOME TAX FACTS-
North Carolina Individual Tax Changes
(This is one in a series of three
articles prepared by the Commit
tee on State Taxation, North
Carolina Association of Certified ■SCyjyr-fo . <
Public Accountants, in co-opera
lion with the North Carolina De- wsjsy
parlment of Revenue.)
ARTICLE 111 STATE TAX
RETURNS REQUIRED FROM
MORE INDIVIDUALS
The 1957 General Assembly
made a number of changes in the
North Carolina individual income
tax law, with most of the changes
bringing State law into line with
Federal law. The preceding two
articles dealt with the major
changes made in the reporting of
income and allowable deductions.
This article deals with the new
filing requirements, changes in
personal exemptions, and the new
system of tax credits for those in
dividuals having income in both
North Carolina and in some other
state.
The provisions discussed are ef
fective for the calendar year 1957.
WHO IS REQUIRED TO FILE
AN INCOME TAX RETURN?
Under the old law, North Caro
lina required an income tax return
from every individual whose “net
income” exceeded his personal ex
emption and also from a self-em
ployed or professional individual
whose “gross income” exceeded
$5,000. Effective this year, North
Carolina requires an income tax
return from every individual whose
“gross income” exceeds his per
sonal exemption, not counting addi
tional exemptions for dependents.
Regardless of the nature of bis
income or his deductions or de
pendents, a married man living
with his wife is now required to
file an income tax return if he
an income tax return if he has
gross income in excess of $2,000;
and a- single person or married
woman is required to file a return
if he or she has gross income in
excess of SI,OOO. If this test is met,
a return is required even though
no tax is due.
PERSONAL EXEMPTION
CHANGES
(1) Married Women
Head of Household
Since 1953, a married woman
furnishing the major support for
herself and her husband has been
allowed to claim the head of house
hold exemption of $2,000, provided
L her husband had gross income dur
ing the year of less than SSOO. The
1957 General Assembly increased
to SI,OOO the amount of gross in
come which the husband may have
and his wife still be permitted to
claim the head of household ex
emption.
(2) Depedent Children of
Divorced Parents
Under the 1957 Revenue Act, a
divorced parent furnishing the ma-»
jor support of a child of a former
marriage may claim the S3OO per
sonal exemption for the child, even
though he or she did not have cus
tody of the child during the "year.
(3) Right to Exemptions
Under old law, the status on the
last day of the year determined
the right to exemptions in all cases
except where a spouse or depen
dent died during the year. Under
new law, the status during the
major part of the year determines
HEADQUARTERS FOR CAROLINIANS
WHEN IN NORFOLK
FAIRFAX HOTEL
FIREPROOF RATES $3.50 UP
TELEVISION RADIO AIR-CONDITIONED
seagratns
Grown
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tUOMH-WSTIUUS COMMIT, KW YOIK CUT. IUHOU WHISKY. M rtOOf. 06% OUMIUITML SPIRITS.
the right to dependency and head
of-household exemptions. Now, a
parent furnishing the major part
of the support of a child during the
income year may claim the child
as a dependent for that year, even
though the exemption status of the
dependent has changed before the
last day of the year.
In the case of individuals sep
arated during the year, the indi
vidual who was the head of house
hold is entitled to that exemption
for that year, provided his or her
status was unchanged for the ma
jor part of such income year.
An individual is still entitled to
the exemption for his spouse or
dependent who died during the
year. t
The new law permits a taxpayer
to qualify as a “head of household”
if he maintains a household for a
dependent whether in North Caro
lina or not. Previously, the house
hold was required to be maintained
in this state.
TAX CREDITS ALLOWED
RESIDENTS AND
NON-RESIDENTS
(1) Residents of North Carolina
Under prior law, residents of
North Carolina who were required
to pay an income tax in other
states were permitted to deduct
the income so taxed under certain
circumstances.
The new law no longer permits
, a North Carolina resident to de
duct income taxed in another state
| but allows him to claim a credit
I against his North Carolina income
tax if (1) the income taxed in the
other state was derived from
1 sources within that state and was
taxable there without regard to
j the residence or domicile of the
taxpayer, and (2) that state would
■ not allow him a credit for income
taxes paid to North Carolina. The
credit allowed to the North Caro
lina resident is the lower of (1)
the amount of income tax paid to
the other state on income report
able to North Carolina, and (2) the
total North Carolina income tax
multiplied by the fraction of the
gross income reportable to North
Carolina which is subject to tax
in the other state.
For example, if a North Carolina
resident earned two-thirds of his
income in North Carolina and one
third in Georgia and is taxed by
Georgia on the one-third earned
there, he may deduct from his
North Carolina tax the lower of
the tax actually paid Georgia or
one-third of the tax due North
Carolina on his total income.
(2) Non-Residents
Non-residents of North Carolina
whose states of residence permit
tax credits to North Carolinians
earning income in those states may
now deduct from their North
Carolina income tax the amount of
income tax paid to their state "'of
residence on income derived from
sources in and taxable to North
Carolina regardless of the source
of the North Carolina income. Un
der prior law, the tax credit did
not apply to the tax on income
from an established unincorporated
RODANTHE PERSONALS
Outer Banks Rebekahs met Feb
ruary 14th, 13 present. Hostesses:
Mrs. Lurania Midgett and Mrs.
Lucretia Midgett.
Rodanthe, Waves, Salvo Home
Club met Monday last week with
Mrs. Margaret Watson. Attending
were the Home Agent, Miss Fran
Alexander, Mrs. Nora E. Herbert,
president; Mrs. Margaret Watson,
Mrs. Bethany Gray, Mrs. Lurania
Midgett, Mrs. Bettie Midgett, Mrs.
Esta Grey, Mrs. Elizabeth Gray,
Mrs. Ella Midgett, Mrs. Mellie
Edwards, Mi's. Sulie Paynre, Ale
thia Meekins. Singing of “On Top
of Old Smoky.” Mrs. J. E. Herbert
led the devotion, reading the 23rd
Psalm. Reading of the minutes by
the Secretary, Mrs. Bettie Midgett.
A demonstration was given on pie
making and meringue for pie by
Mrs. Margaret Watson, Mrs. Bet
tie Midgett and Mrs. Nora E. Her
bert. The hostesses were Mrs. Mar
garet Watson and Mrs. Bettie Mid
gett. The meeting closed to meet
again at the regular time.
Mr. and Mrs. John E. Herbert
Sr., spent Monday night with Mr.
and Mrs. Dameron M. Payne and
Miss Elva Payne in Wanchese.
Mr. and Mrs. Julian L. Gray
and daughter, Sheila,- spent Satur
day night with Mr. and Mrs.
Dewey Hayman and Mrs. Eliza
Gould at Arlington Hotel, Nags
Head.
Mr. and Mrs. Herbert K. Midgett
Sr. left here Sunday to meet their
son, Herbert, Jr., in Norfolk, who
has spent several months at the
South Pole.
• Mr. and Mrs. Jack W. Cahoon
and son, Jack Jr., spent Saturday
night with Mr. Cahoon’s parents,
Sheriff and Mrs. Frank Cahoon in
Manteo.
Mrs. Lurania Midgett returned
Monday after visiting her sister,
Mrs. Eliza Gould, at Nags Head.
Mr. and Mrs. Fred O’Neal re
turned Thuisday from Norfolk.
Mrs. E. R. Midgett, who has
been in the U. S. Public Health
Service Hospital for treatment
with a broken ankle, is home and
improving.
D. B. Midgett, Jr., U.S.C.G., sta
tion in Norfolk, spent the week
end here with his mother.
Johnnie Beck, U.S.C.G., station
ed in Norfolk, spent the week end
here with his grandparents, Mr.
and Mrs. Leve W. Midgett and
family.
Mr. and Mrs. Donald Jodd have
returned after a visit to their old
home in Pittsburgh, Penn.
business in North Carolina.
(3) General
In order to receive the tax
credit, the taxpayer must furnish
a tree copy of the return made to
the other state and substantiation
of the amount of tax paid.
The North Carolina Revenue
Department has prepared a “Reci
procity Memorandum” which sets
forth the extent to which recipro
city of tax credits is practiced by
North Carolina with other states.
This memorandum is available
upon request to the North Carolina
Revenue Department, Individual
Income Tax Division, Raleigh.
ENGELHARD PERSONALS
Lt. and Mrs. Wm. Burrus of
Camp Rucker, Ala. are visiting her
mother, Mrs. Jabin Berry.
Mr. and Mrs. Thos. E. Spencer
and son Tommy of Washington
spent the week end here.
Tracey Gibbs has returned to
Norfolk after a visit with his par
ents, Mi-, and Mrs. Durwood
Gihbs.
Mr. and Mrs. James Emory Mid
yette spent Sunday in Creswell.
Earl Spencer of Plymouth spent
the week end at home.
Mr. and Mrs. Glenn Jarvis and
children of Cocoa, Fla., who were
called to Swan Quarter due to the
death of her father. Whitfield Wil
liams, visited relatives here dur
ing the week
Rev. and Mrs. L-'mar Wheeler
and son Wayne of Fairfield spent
Sunday here and Mr. Wheeler fill
ed his appointment at the local ]
Baptist Church.
Miss Alice Fay Etheridge, who
teaches school in Virginia, spent
the week end with her parents,
Mr. and Mrs. T. J. Etheridge.
MANY BOAT LAUNCHING
RAMPS ON DARE COAST
In addition to major harbor im
provements for the reception of
small craft and yachts that have
been completed in Manteo, at Wan
chese, Manns Harbor, and commu
nities of Hatteras Island, the coast
of Dare this year will offer more
landing facilities for mgtor boats
than ever before. • j,
Just about every community
from Kitty Hawk and Duck south
ward to Hatteras and westward to
East Lake and Mann? Harbor have
landing ramp facilities for small
boats this year. Many of the facili
ties have been completed since the
summer season of 1957.
Complete information about tlje
ramp facilities for small boats and!
also harbor improvements for thej
reception of yachts and larger
craft in the various Dare Coast
communities is now being compiled
by the Dire Countv Tourist Bu
reau. This information will be in
cluded in an up-to-date sportsfish
ing bulletin for 1968 that will soon
be published.
ft ‘
THE COASTLAND TIMES, MANTEO, N. C.
You can't see a ||
crippled heart *«
She doesn’t use crutches—
but she has a crippled heart.
She is one of 500,000 chil
dren with damaged hearts
who look to medical research *
for a brighter tomorrow.
You support research and
help all hearts—when you
give to the Heart Fund.
uftit f « n<l
#3-(ft
-y- : -!
AVON PERSONALS
Mrs. Zenovah Sample and son,
Robert Jr. of Elizabeth City are
visiting her parents, Mr. and Mrs.
Blucher Scarborough.
Harvey Scarborough, U.S.C.Q.,
Berkley, visited his wife here
over the week end.
William Miller, Mr. and Mrs.
Bembra Miller and children of Wil
mington, Del., are here.
Mrs. J. W. Barkley and daugh
ter, Susan, visited in Norfolk last
week.
Mr. and Mrs. Ervin Farrow and
children visited relatives in New
Jersey.
Mr. and Mrs. Horace Gregory
and infant daughter of Elizabeth
City visited Mr. and Mrs. Pritchard
Gray, Sr.
Mr. .and Mrs. Lupton Gray and
daughter Wanda of Fort Bragg,
visited Mr. and Mi's. Alonzo Gray
and Mr. and Mrs. Celestial Scar
borough.
Mr. and Mrs. David Russell and
sons of Norfolk visited Mr. and
Mrs. G. H. Meekins recently.
Tom Scarborough of Wilming
ton, Del., is visiting Mr. and Mrs.
John Scarborough.
Mr. and Mrs. George Oliver
O’Neal are visiting their daughter,
Mrs. ’ Pearle Selle, in Norfolk.
Bridal Shower
On Wednesday evening at the
home of Mrs. Ralph Scarborough,
Mrs. John O’Neal, a recent bride,
was honored by a miscellaneous
shower. The co-sponsors were Mrs.
Noah Price Jr., Marceline Gray
1957 Ford Custom, 300, 2-door,
R&H, V 8
1957 Ford Custom 300, 4-door,
Heater, V 8
1957 Ford 4-door, loaded
1956 Ford Convertible, VB,
R&H, Ford-O-Matic
1956 Ford Customline, 4-door
VB, Heater
1955 Ford Fairlane, 2-door
1955 Ford, 2-door 6
1955 Ford 4-door, Station
Wagon
1955 Plymouth, 4-door, R&H
1954 Chevrolet, 2-door,' R&H
1954 Ford Custom VB, R&H
1954 Ford 6, 2-door
1953 Chevrolet Convertible
1963 Chevrolet 210 —4-door
1953 Dodge VB, 4-door, O.D.
1953 Pontiac, 4-door, Loaded
1953 Studebaker Champion, 2-
door, O. D. Extra Clean
1952 Chevrolet, 2-door, R&H
1952 Chrysler V 8 4-door
1950 Studebaker, 4-door
Champion
TRUCKS
1956 Ford ft-Ton Pickup V 8
1956 Chevrolet ft-ton Pickup
1955 Chevrolet, 2-ton, C-OE,
Long W-B, New Tires, V 8
1955 Ford ft-ton Pickup
1954 Dodge ft-ton Pickup
1949 Chevrolet Pickup
★★ ★ -
R. D. SAWYER
MOTOR COMPANY
Your FORD Dealer
Phone 116 Manteo
N. C. License No. 1969
Salesmen:
Julian Snow, Powells Point
Arnold Tolaon, Manteo
Bill Rogers, Kitty Hawk
LAFAYETTE ESCADRILLE DAY
PROCLAIMED BY GOVERNOR
Movie Premiere in Washington Febru
ary 28 To Honor Four North
Carolinians Who Died in
World War I •
North Carolina will honor the
memory of four young men killed
in combat while serving in the
famed French flying squadron of
American aces—The Lafayette Es
cadrille—during World War I by
observing Lafayette Escadrille Day
on Friday, February 28. In recog
ntion of the Lafayette Escadrille
and the young North Carolinians
who served in its ranks during
World War I, Governor Hodges
has designated Friday, February
28, as Lafayette Escadrille Day in
North Carolina and called it to
the attention of the people of the
state.
On this day Warner Brothers
Studios’ new picture, “Lafayette
Escadrille,” will have its world
premiere in Washington ,home of
one of these aces, James Henry
Baugham. Funds for this showing
will be used to begin a campaign
for a new youth center in Wash
ington to be named in honor of
Baugham.
The purpose of this Day will be
to give recognition to the gallant
service of James Henry Baugham
who, until now, has had little pub
lic notice for his great contribu
tions to the defense of this Nation
and to the progress of aviation.
Baugham was the brother of Patty
Baugham of Washington, now
Mrs. Harry McMullan.
Baugham, one of the first Amer
icans to offer his services to
France, shot down the first enemy
plane credited to the Lafayette
Escadrille, and was killed in com
bat on September 23, 1916, after
he had established a remarkable
record as an aviator and leader.
Baugham’s ability and technical
brilliance made such a lasting im
pression on his colleagues that he
was awarded posthumously the
Harmon Aviation Trophy in 1921,
and Mrs. Oley Hooper.
The bride received many lovely
and useful gifts.
ARCHIE BURRUS
Self-Service Food Center
MANTEO, N. C.
YOUR WEEK-END GUIDE TO GREAT
FOOD VALUE, MONEY-SAVINQ AND
BETTER LIVING ,
OUR MEAT DEPARTMENT
IS ALL WESTERN, GRADE A
Chuck Roast, Select Steer lb. .59
Picnic Ham, Swift Premium 4to 6 lb. avg. lb. .44
Bacon, Swift Premium lb. .59
Boiled Ham, Swift Premium 6 oz. pkg. .53
IN OUR GROCERY DEPARTMENT
Tomatoes, Red Glo, 303 Can 2 for *25
Tomatoes, Red Glo, 2V2 Can 2 for .41
Pineapple, Crushed Del Monte, No. 2 Can 2 for .49
Welchade, Grape Drink, qt. can 2 for .53
Beans, Navy, 1 lb. pkg 2 for .25
CLOTHES PINS j: Ritz Crackers, Lg. 28
COIL SPRING Hi Ho Crackers,
pkg. of 18 2 for .25' j; Lg. 22
IN OUR PRODUCE DEPARTMENT
Lettuce, hd. 2 for .23
Cueumbets, Extra Fancy Ea. .09
Juicy Florida Oranges daz.
WE HAVE FOUR DELIVERIES
DAILY TO YOUR DOOR
PHONE FOR DELIVERY SERVICE 237
WE RESERVE THE RIGHT TO LIMIT QUANTITY
PRICES EFFECTIVE FRIDAY AND SATURDAY FEBRUARY 2R. AND MARCH I
one of the Nation’s highest avia
tion awards.
The other three flying aces were
Arthur Bluthenthal of Wilmington,
James R. McConnell of Carthage
and Kiffin Yates Rockwell of
Asheville.
WANCHESE PERSONALS
Mrs. Agathia Swain of Elizabeth
City is visiting her sister, Mrs.
Willie Etheridge, Sr.
James Burton Daniels received
ffc ■ ' \
Channel Bass
RESTAURANT
Formerly Known As The Dolphin
WILL BE OPEN THE
YEAR ROUND
From 6 A.M. (o 11 P.M.
SEA FOOD
A SPECIALTY
LOCATION: SOUTH SIDE SLASH BRIDGE
HATTERAS. N. C.
808 AND MARIAN BALLANCE
Otvner Management
FRIDAY, FEBRUARY 28, 1958
medical treatment in Norfolk.
Mr. and Mrs. Arnold Daniels
visited in Columbia.
Mrs. Malcolm Daniels, Mrs. Wil- '
lie Etheridge, Jr. and mother, Mrs.
McDonald were in Elizabeth City
Monday.
Basil Daniels and daughter, Ann,
spent Saturday night and Sunday
in Norfolk.
Mr. and Mrs. Willie Etheridge,
Sr. and Mrs. Agathia Swain, visit
ed Mr. and Mrs. George Payne at
Stumpy Point.