Evening star. [volume] (Washington, D.C.) 1854-1972, 1952-01-29


turn for 1851.
|or most Of the tax withheld from
them. No figuring. Answer ques-
lions. Mail to the collector. He
figures the tax for you.
Form 1040 (Short-form): For
under 900 people who don't fit
1.-THE rules for using Form 1040-A.
mo figuring. Find your tax in the
table on the back. That's why it's
Icalled the short-form.
Form 1040 Qong-form): It's the
same Form 104O but Is called the
Hong form when. instead Of using
the tax table. you figure your own
tax. A person with 5000 or more
Income has no choice. He must use
this long form, figuring his tax.
When Bills Are Unusually Large.
This 1040 long form also can
|be used by>any of the under-$5. 900
people whose deductible expenses.
such as charitable contributions
or medical bills. were unusually
large. Here's an explanation.
Most peoples deductible ex-
penses don't amount to 10 per cent
of income. Still. any one using
Form 1040-A automatically gets q
deduction Of 10 per cent before
the rest Of his income is taxable.
When you mail Form 1040-A TO
the collector, he figures your tax
according to q table in which al
Ilowance already has been made
for that 10 per cent or so Of de-
ductible expenses. So. in using
Form 1040-A, you don't have to
litemize q single expense.
But don't use Form 1040-A II
you're one Of those under 5000
people whose deductible expenses
were actually more than 10 per
cent. Instead, use the 1040 long
form. There you'll have to figure
your own tax and itemize every
expense you wish to deduct. But,
in this way. you may claim the
full amount Of your deductions.
The under-$5. 900 people who
can't use Form 1040-A but use
the 1040 short-form also auto
matically get . deduction Of about
10 per cent for expenses. It's al
lowed for in the table. they use
ION the back of Form 1040,
If Expenses Are Above 1917.
If their expenses run to more
than 10 per cent Of income. they,
too, should use the 1040 long form
and claim their deductions in
full even though it means the
extra trouble Of figuring their own
tax and itemizing deductions.
Any one with 5000 or more In
come, using the 1040 long form,
takes q deduction Of 10 per cent
up to a limit of $1,000 without
itemizing. He subtracts that de-
duction before applying the tax
to what's left Of his income.
(Note to married people:
Married couples fling jointly
on the 104O long form take that
10 per cent, up to q limit Of
$1,000, without itemizing. But
if they file separately, each is
limited to a deduction Of no
more than $5O0.)
Examples: Jones' income was
81, 300. He deducts $3.50 from his
income before applying the tax
to the remainder. Smiths income
was $4,000. He knocks OF 81 900.
Browns income was Sill, 900. He
cant claim any more than the
81 900 limit without itemizing.
Must Itemize Deductions.
In short. any one with S., 900 or
more income but less than $4,000
must itemize his deductions If he
wants to claim more than 10 per
cent Of his income. Any one with
$4,000 or more who wants to
claim more than $1,000 must
litemize.
Here are the rules:
1040-A. You can use it If your
income was under $1,000 and all
If it-except for no more than
500 in untaxed wages, dividends
or interest-had tax Withheld from
it. Examples:
Jones' income was $500. Tax
was withheld from all but 500 In
1untaxed wages, dividends or In
terest. He may use Form 1040-A.
But If that extra income from
untaxed wages or interest or div
idends amounted to as much as
$4,000 he couldn't use 1t. And
If he had any other kind Of In
come no matter how small-say q
commission or rent or money