Evening star., 1949-02-24
Your Income Tax
(Fourth OF q Series. y
By james Marlow
Assocjcted Press Stoff Writer

| ASS0ct0T0o FFetS SI0n WFfeF
Using the 1O40 short form for
your 1948 income tax return is
easier than using the 1040 long
form.
Both are part of form 1040. It's
called the short form when, with
out figuring, you find your tax in
the table on Page 4.
It's called the long form when
you figure your own tax according
to a formula on Page 3.
Not every one can use the short
form-only those with under $5.-
900 income. But any one, under or
over $4,000, can use the long form.
And those with $4,000 or more
have to use it. They have no
choice.
The short form mainly is for
those under $4,000 people, like
landlords or others from whose
1948 income little or no tax was
withheld.
(Most of the under $4,000
people who had full tax with
held from them will use the
much simpler form 1040A, ex-
planned in previous story.)
Short Form IL Easier.
Even though the short form is
easier than the long form, some
times you may save money by
using the long form. For example:
In getting deductions.
Any one using the short form
automatically gets a 10 per cent
deduction for deductible expenses
like hospital bills, charity, taxes,
and so on.
You don't have to itemize them,
or even claim the 10 per cent. It's
already allowed for in the tax
table you use with the short form.
But you'll save money by using
the long form if your deductible
expenses were actually more than
10 per cent.
In that case you'll have to fig
ure your own tax and itemize
your deductions, to prove them,
but you can claim them in full.
To save money, husbands and
wives should think carefully about
the 1040 short form; when to use
it. how to use it, whether to use it.
Joint Return May Save.
II their combined income was
under $4,000. husbands and wives
can file jointly on the short form.
Some will save money by doing it.
That's because of the new law
that permits couples to split"
their income, as though each
claimed half. and thus get a lower
tax. Example:
Jones had $4,950 income, his
wife none. Jones, like every one
else filing a return, gets an exemp-
ton for himself and another for
his wife, If she has no income.
Now see what happens If
Jones files separately (meaning,
his wife does nothing. Look at
the bottom of the tax table, on
Page 4, where it shows S4,950.
Then look across to the tax on a
person who files separately but
has two exemptions. His tax is
S579.
Now say Jones and his wife file
Jointly (meaning, she signs the
return with himD. In this case
looking under the column for peo-
pie filing jointly. opposite an in
come OF $4.950-the tax is only
$544.
Some Cases Unaffected.
So the Joneses saved $35 by fl
ing jointly. But filing jointly
won't save for married couples in
all cases. You can see why by
looking at the tax table again.
Where there's only one income
for couple. say the husbands or
wife's, and it's under $4,000, they
can't lose by filing Jointly.
If they have two incomes, but
the total is under $4,000, they
should check the tax table care
fully to see whether they'd save
by filing separately or jointly.
And if their deductible expenses
run more than the 10 per cent
allowed in the tax table, they
should file their return on the
1040 long form. In that case
they'll have to itemize their de-
ductions. but can claim them
fully.
Here's another point for under