The journal. (Caldwell, Ohio) 1934-1961, 1955-01-27
Helpful Hints On
Your income Tox


why should ! bother with thai
old tax form?" asked a young
lady who started on her first job
in December. Il don't need to be.
cause ! got less than $780,"
You don't need to" her father
explained, "but it will cost you
money if you don't. How do you
expect to get back the tax that
was withheld from your pay?"
DO You Have To File?
Here are the rules to help you
decide whether to file a federal
income tax return:
/. If your gross income was $500
or more in 1854, you must file,
unless you are SIS or older and
had less than $1,000 income.
2. If you had $400 or more in
come from self-employment you
must file return to report these
earnings for social security pur-
poses.
3. If you had any salary or
wages from which withholding
tax was deducted by your en-
ployer, you must file return to
get credit for the tax withheld.
Married Couples
Generally it's best for married
couples to file joint returns, be-
cause the joint return gives them
advantage of income-splitting.
That is, they are taxed at the rate
which applies to half their total
taxable income.
There are a few exceptional
cases in which separate returns
might result in saving. When
losses are involved, for example,
it's best to figure both jointly and
separately to see which results
in less tax.
Head of Household
If you are supporting a depen-
dent, although you are single,
widowed, divorced or legally sep
arated, you may be able to quail
ify as a 'head of household" and
| figure your tax on a special table
that gives you part of the advan-
tage enjoyed by married couples
filing joint returns.
This year you can qualify for
"head of household status if you
provide more than half the sup
port Of a parent and more than
half the cost of maintaining the
parents household even if the
parent does not live with you.
incidentally, if your husband or
wife died in 1852 or 1858 and you
have as member Of your house
hold a dependent child or step
child, you are now entitled as d
Surviving spouse" to the same
income-splitting benefits this
year as you would have had on a
joint return--unless you remarri-
ed before the end Of 1854. Your
privilege to file as a surviving
spouse applies to the first two
years following the year in which
your husband or wife died.
Choosing the Right Form
The simplest tax return is a
small card, Form 1040A, on which
you furnish a minimum of infor-
nation and leave it to the govern
ment to figure your tax This is
all right if you are sure you can't
save by itemizing your deductions
and if you are not a "head of
household"
You are allowed to use Form
1040A if your income was less
than $4,000, consisting only of
wages, dividends and interest,
and if all 500 or less is listed
on your VIZ Withholding slips.
On Form 1040 you figure your
own tax. 1t may be used as a
Short form on which you find
the amount of your tax from a
table which allows you approx
mately 1919 of your income as a
standard deduction for contribut-
tions, taxes, interest paid, medi-
cal and dental expenses, etc.
If your income in 1854 was
$4,000 or more you must use
Form 1040 as a long form" The
long form permits you to itemize
your deductions, whether your
income was more or less than
$4,000.