The guardian. [volume] (Boston, Mass.) 1901-1960, 1956-02-25
Your Income Taxes

This is the fourth, in a series
of eight articles on Federal
and State income taxes dis
tributed by Boston Chapter
of the National Association of
Cost accountants.
What expenses are CLASH
fed as "other deductions" on
the Federal return?
A partial list of expenses
which are classified as "other
deductions" follows:
l. Contributions
2. Interest
3. Taxes
4, Medical expenses
S, Child-care expenses for
working mothers or widowerS
6. Casualty losses
7. Miscellaneous expenses
These expenses are shown
on page 2 of your tax return.
What contributions may I
deduct?
You may deduct the amount
you contributed to most nom
Nrofit religious, charitable,
educational, scientific, and
literary organizations; to vet
erans' organizations; to So
cieties for the prevention of
cruelty to children or ami
mails; to fraternal societies,
orders of associations. If you
contributed property rather
than cash, you may deduct
the fair value of the pro-
perty. There is a limitation
on your deduction, but the
limitation rarely applies to
the average taxpayer.
What interest may I de-
duct on my tax return?
You may deduct the in
terest paid on most loans if
you are legally obligated to
make the payment. This in
cludes such items as the in
terest on a mortgage on your
personal residence, interest on
a personal loan, interest on an
instalment purchase of a car,
a television set, etc.
What taxes may deduct?
Generally speaking, you
may deduct all State and
local taxes imposed upon and
paid by you. You may not
deduct Federal taxes or Ma
sachusetts gift or Inherit
ance taxes. Your State in
come tax, drivers license,
motor vehicle registration fee,
meal tax, State gasoline tax,
State cigarette tax, State IL
quor tax, poll tax, local real
estate and personal property
taxes are typical of the taxes
which you may deduct.
What are medical expenses?
A medical expense is an
amount paid for the diagnosis,
cure, treatment, mitigation or
prevention of disease, or for
the purpose of affecting any
bodily function or structure.
1t also includes premiums
paid for accident or health
insurance. Fees paid to physi-
clans, surgeons, dentists,
Christian Science practition-
erS, nurses (including nurses
board), chiropodists, chiro-
practors, therapeutics, and
osteopaths; the cost of arti-
ficial teeth, eyeglasses (in-
Guiding examination), drugs
and medical supplies (includ-
ing Yitamins prescribed by a.
DOCTOR, hearing aids, ETC.,
are considered medical ex-
penses.
My wife and I are under
IS. May I deduct all of our
medical expenses?
No. Your deduction is
limited to that portion of the
medical expenses which ex-
ceeds 81 of your adjusted
gross income" However, in
computing medical expenses,
amount paid for medicine and
drugs are considered only to
the extent that they exceed
IL of your adjusted gross in
come.
Example: A taxpayer had
adjusted gross income in
1856 of $4,000. His expendi-
lures for medicines and. drugs
were 5000 and for all other
medical expenses, $500. The
total medical expenses, for
tax return purposes, would be
$64O. $500 plus the expendi-
lures for medicines and drugs
in excess OF IL of $4,000, or
sl4O1 The taxpayer is en-
titled to a deduction Of $3.50,
fS64O minus 81 Of $4,000, OF