The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1944-02-24
Not All Toxpoyers
Con Use Optional
Income Report
BY S. BURTON HEATH
NEA Staff Correspondent

ANA~A OSe-AA SSAANoRSAASAS
The optional income tax form,
l040A, eliminates much of the figur-
ing required by Form 1040, discussed
In previous articles. However, 1040A
can be used only by taxpayers:
1. Whose gross income is $4,000 or
less.
2. Whose income came exclusively
from compensation for personal
serviveS and from dividends, interest
and annuities. If you had income
from any other source, you must use
use Form 1O40.
Form 1910.
The optional form will save work,
bu in many instances it will cost
you money. You must decide wheth-
er the possible saving by using Form
1040 is worth the labor involved.
If you are using Form 1040A, first
enter your salary, wages, etc, as
Item /, and your interest, dividends
and annuities as Item 2. Add them
to get Item 3.
List your dependents in Item 4.
Carry the total credit at 1885
each, on this forn-to the right
hand column, and subtract it there
from Item 3, which gives Item 5.
TAX ALREADY FIGURED
Now, at the top of page 2, decide
which of the six numbered options
covers your case. Suppose it is No.
S. That is in Box c. So in the table
below, in Column C, opposite your
income range, is the amount of
your 1943 tax (normal and surtaX
combined. That figure takes &C
count of your personal exemption
md allows an averaged amount
or deductions, earned income
redit, etc.
If, for instance, your taxable in
come after dependents credits
amounted to $142185. it would be
IN the $14OO to 1925 line of the
liable. On that line, in Column c,
The tax shown is SIT. Enter this on
page as Item 6.
At the bottom of page 2, in the
Victory Tax box, enter on line Ca
the amount shown in Item 3 on
Gage /; on line (b) the exemption
obtained by following the clear in
,tructions given with line (b), and
hen subtract (b) from (a) to get
tc).
lin the specimen form pictured.
1924 exemption was claimed for
he wage-earner himself, and an
sther S7.S5 for his wife because She
owned the bank accounts which
earned S7.85 of taxable interest
shown as Item on Page L.
TO FIND VICTORY TAX
Suppose you are married and liv-
ing with your wife and have two.
legal dependents. Follow along the
Married" line until under the black
figure 2 Cfor dependents the Victory
Tax rate is shown as % per cent.
Multiply the amount shown on line
Co by .O28 to get your Victory Tax.
Enter the amount of that tax on line
Cd of the Victory Tax box and on
page l as Item Z.
Add items 6 and Z to get your
total tax, which goes in Item 8.
AS Item 9, enter the amount Of
YOUR 1912 tax AS item 10, copy
either Item or Item 9, whichever
is larger.
If the smaller of Items and 9 is
$50 or less, ignore Item IL except
TO write "O' as Item TIC in the right
hand column. If the smaller is more
thar $50, refer to instructions given
in the final article of the series on
Form 1040.
Add Items 10 and TIC to get Item
IL.
For item 10, enter the inforna-
ton asked in A, B and c, referring
to the eleventh article on Form
1G40 if you need help. Add the
amounts in A, B and C, and carry
their total to the right hand column
as I'D.
CHOOSE WAY TO PAY
If Item IL is greater than Item
I'D, enter the difference in Item
"A. If Item I'D is greater than
Item II, enter the difference in
Item II (and write None" in Item
l4)
If you have something in Item
IA, you owe the Government. In
that case, write in Item is the
amount, up to half of Item TIC,
that you want to defer until March
Is, 1945, and write in Item 16 the
amount you are paying with this re-
turn.
If you have something in Item II
that is, if the Government owes
you-ignore Items Is and 16, and
check in one of the squares at the
bottom whether you want the money
refunded to you or whether (expect-
ing to have to pay something
through 1914 with tax estimates) you
want to let the credit stand against
anticipated future debts.