Evening star., 1949-03-04
Your Income Tax
(EleDenth OF a SeriesJ
By jones NARROW
A,soeio,ed Press Staff Write,

Asoctoteo FreSS Sroff Wrif@
This explains some of the de-
ductions you can and can't take
In making your 1948 income tax
returns.
Also listed are some kinds of
income which, because they're
tax-free. don't have to be report
ed at all.
Remember. right here, a couple
Of points:
/. There are various limits on
the deductions you can take for
medical expenses. They're ex-
planned at the end of this story.
2. For charitable contributions
you can deduct no more than Is
per cent Of your income.
8. But there's no limit on the
other kind of personal deduc-
tions you can claim, if you can
prove you had them and are en-
titled to them.
4. Don't get business deductions
mixed up with personal deduc-
tionS. On your 1040 long form
there are separate places for each
kind.
Tax-Free Income.
Here's tax-free income which
doesn't have to be reported:
Unemploy m n t compensation;
Social Security benefits; life in
surance paid because of the death
Of the insured; inheritances, gifts
or bequests of money or property,
although the income from them
Is taxable; sickness and injury
benefits received through accident
or health insurance or under
workmen's compensation laws.
Monthly Government allowances
to the families of servicemen;
mastering out pay; all benefits
under the CT Bill of Rights, such
as for education and subsistence;
State bonuses to veterans; disabil-
ity pay; retirement pay for service
connected disability; allowances
for uniforms; subsistence, travel
ing. quarters; pensions to veterans
or their families for war services;
an active service pay Of enlisted
men In the armed forces, and the
pay of officers up to $1,000.
Here are personal expenses
which can be deducted:
Contributions Qimited to is per
cent of income) to charitable,
religious, scientific, fraternal and
veterans organizations. and non
profit educational institutions.
Personal Expenses.
Here are other deductible per-
sonal expenses:
Dues to a labor union: State
income and personal property and
real estate taxes except taxes
which, like paving assessments,
tend to increase the value Of your
property. Also
Interest on your personal note
TO q bank or individual; mort
gage on your home; a life insur-
ance loan, If you pay the interest
IN cash; delinquent taxes; inter-
est ON installment purchases.
Also
State or local retail sales taxes,
auto license fees, poll taxes, State
gasoline taxes. except in Alabama,
California, Florida, Louisiana,
North Dakota, Utah, Wyoming
and Hawaii; property losses from
fire, theft, storm or auto accidents
when you weren't wilfully at fault
and you didn't get paid off for the
damage; use Of your car for busi-
ness. entertaining for business
subscriptions to profess
sional journals, books and maga-
xines bought for use in your pro-
fession, equipment, tools and in
used on your job. cost
Of work clothes and uniforms
when not capable of taking the
place Of ordinary clothing.
Taxes Not Deductable.
You cannot deduct the follow
ing Federal taxes unless paid for
business purposes: Telephone,
or transportation, such
as train or bus; admissions to
theaters or sporting events or club
dues.
Nor can you deduct the Federal
tax on jewelry, furs, cosmetics,
inheritances or gifts i'm