Evening star., 1949-02-22
Your Income Tax
By jones NARROW
fSecond of a SeriesJ


form do use in making my 1948
income tax return?
There are three forms-1040-A,
the 1040 short form and the 1040
long form. The dividing line is
an income of $4,000 or more.
If your income was $4,000 or
more you have no choice. You
must use the 1040 long form and
figure your own tax. You can't
use the others.
But those with under-$5 900 in
come can use Form 1040-A or the
1040 short form or, if they wish,
the 1040 long form.
What form the under-$ 900
people use depends upon the kind
of income they had and what de-
ductions they claim. Those who
claim big deductions will use the
1040 long form.
Both Easy to Handle.
Both Form 1040-A and the 1040
short form are easy to handle.
Form 1040-A.-No figuring. An
swer questions. Send it to the tax
collector. He'll figure your tax for
you, send you any refund due or
tell you if you owe any tax.
The 1040 short form-No flgur-
ing. Answer questions. Find your
own tax in the table on the back
That table gives the tax on income
up to $4,000
Form 1040 is really one form
of four pages. It's called the
long form when you figure your
own tax, the short form when
you use the table,
But when do you use form
1040-A or the 1040 short form?
You can use form 1040-A when:
l. All your under SIS 900 income
was from wages or salary from
which full tax was withheld dur
ing the year, Or
2. When any other income. not
already taxed. amounted to no
more than $100 and came from
Cd wages, % dividends, or 81
interest
Example Offered.
If your understood income
doesn't fit that bill. then you can
use the 1040 short form (or the
long form. For examples:
You had income of $101 from
dividends. or interest, or wages
from which tax was not withheld.
You'd use the 1040 short form.
Cor long form.
You had income, no matter how
small, from rent. or business, or
farming or anything else not list
ed in %, 90 or 80 above. You'd
use the 1040 short form Cor the
long farm.
Then there's the problem Of de-
ductions-
The under-s5 900 people who
use form 1040-A or the 1040 short
form are allowed about a 10 per
cent deduction from their income
for things like hospital expenses,
charitable contributions, and so
on.
They get that 10 per cent de-
duction automatically, and with
out having to itemize any deduc-
tions at all. They don't have to
claim the 10 per cent. They get
it, without asking.
Collector Figures Tax.
When they use form 1040-A. the
collector who figures the tax for
them takes out a 10 per cent de-
duction for them. He uses tax
table.
And when they use the 1040
short form. the 10 per cent de-
duction already is allowed for in
the tax table they use to f1nd their
own tax.
But what of the people who
want to use Form 1040-A or the
1040 short form and find their de-
ductions really amount to more
than 10 per cent?
They should use the l040 long
form. There they can claim what
ever their deductions are. But
they'll have to prove them by
itemizing them.
Husbands and wives can use
Form 1040-A or the 1040 short
form to file a joint return and, by
splitting their income under the
new law, save money, provided
Their combined income is under
$4,000 and that income fits the
rules for using Form 1040-A or the
1040 short form.
If their individual incomes are
each under $1,000 but. combined,
are $4,000 or more. they can file
jointly on the 1040 long form and
save money by splitting their in
come.
The old form W-2-the receipt
given by employers for taxes with
held from pay-used to serve as
an income tax return. But no
more. Form 1040-A has now taken
its place.
But enclose the Form W. re-
ceipt with your return on Form
1040-A.
Italy will spend $3.50, 100000 on
oil research and equipment before
1858.