Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-01-28
BY q. X. HODENFIELD
Ap star writer


AP star writer
IN the nth article Of this
series we discussed the possible
exclusion Of sick pay" from
your gross income. In the sixth
article we discussed job-con-
Iiected expenses that may be
deducted.
With these figures In hand.
you can now determine whether
you will be better OF TO take
the standard 10 per cent deduc-
ton allowed for certain personal
expenses. or whether you should
itemize them on page 2 Of form
i040. (You can't itemize your
deductions on form l040A. but
you are automatically given
credit for the standard 10 per
cent oif.)
The basic figure you have TO
work with Is your adjusted
gross income" which means
your total taxable income minus
your sick pay" and job-con-
nected expenses.
On line 5 Of the first page OF
the form 1910 you list your
gross wages and compensations,
On line 6(al you can list your
business expenses, and on line
Sob your sick pay exclusion,
Add the figures on lines 6ta)
and 6(b). and subtract the
total from line 5, The remainder
= your adjusted gross in
come II you have no income
from other sources such as
interest. dividends. etc. II you
list no sick pay exclusion or
Job-connected expenses, the
amount on line 5 would be your
edjusted gross income.
The standard deduction al
lowed to all Is 10 per cent OF
This adjusted gross income. but
with certain dollar limits. II
you are single. the standard de-
auction can't total more than
y 900. The limit Is also $1,000
Y you are married and file a
Joint return. II husband and
wife file separate returns. the
limit they may claim under the
standard deduction is $500
each.
II you ,temize your deduc-
tons. you can forget both the
10 per cent and the dollar limits
Thus il may be to your advan-
tage 70 work II out both ways
and see whether you would
save money by itemizing.
Husbands and wives filing
separate returns should remem-
Der that II one takes the stand
ard deduction. the other must
do the same. Likewise. II one
itemizes his or her deductions,
80 must the other.
Pages q. Q and 10 Of the in
struction booklet that comes
with form 1910 90 into great
detail on the itemized deduc-
tons you may claim.
Some Of the more important
cateeories are:
C0ntributions-ThiS includes
gifts to religious. charitable,
educational. scientific or liter
airy groups. However. YOU can't
deduct gifts 10 friends or rela-
tives. political candidates or
organizations. social clubs. labor
unions. chambers Of commerce
or propaganda organizations.
Generally. these contributions
may not exceed 20 per cent Of
your adjusted gross income.
However. you may deduct UP TO
80 per cent II one-third Of what
you claim Is for contributions to
churches and tax-exempt hos
pitfalls and educational institu-
tons.
Interest-This includes In
terest on your home mortgage
or on o ban loan or other per-
sonal debt. The service charge"
or carrying charge" on many
installment purchases are not
strictly interest but you can still
deduct a part Of this. Just add
up the balance still due at the
end Of every month and divide
the total by IL to find the
average unpaid balance. You
may then deduct 8 per cent Of
that figure as interest.
Medical and Dental Expenses
This one can be q bit tricky,
but II may be q means Of saving
you considerable money. First,
ind l per cent Of your ad-
iusted gross income. You can
include In medical expenses the
cost Of drugs and medicine that
exceeds that amount. Next. find
3 per cent Of your adjusted
gross income. You can deduct
medical expenses that exceed
that amount.
Persons IS or older may ig-
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