Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-01-28
Deductions Can Be Key
To Income Tex Savings

more the 3 per cent rule on
their own medical bills, but not
the per cent limitation on
drugs and medicines. However.
persons Of any age whose
medical bills during the year
have been extremely high
should refer to page 10 Of the
instruction booklet for the dol
lar limitations that the law
places on medical deductions.
These limitations start at
$2.5OO.
Taxes--In general you can
deduct most Of the nom Federal
taxes you paid during 1857. This
would include state. county or.
city retail sales taxes. personal
property taxes. real estate taxes,
state or city income taxes. state
gasoline taxes. poll taxes, auto
license fees. etc. However, you
can't deduct federal excise taxes
on your personal expenditures.
water taxes. hunting licenses,
dog licenses. federal social Sc
curity payments. auto inspec-
ton fees or taxes paid by you
for another person.
Casualty Losses and Thefts-
The law allows you TO deduct
any loss not covered by insur-
ance. from the destruction Of
your property in a fire. storm,
automobile accident. shipwreck.
hurricane food or other natu-
raj forces. You can deduct
your losses from theft in the
year Of discovery. but not losses
from misplacing articles Of
value. Damage TO your car by
collision or other accident can
be deducted II due merely to
faulty driving. but not II due to
your willful act Of negligence.
Care Of Children and Dis
abled Dependents-A deduction
of up to $500 may be claimed
by employed women and men
who are widowed. legally sepa-
rated or divorced. for the care
of certain dependents. The
basic rules are that the care
must be necessary to allow the
taxpayer to work or seek work
and that the dependent be un-
der IL or physically and men,
tally unable to care for him.
self,
A married woman can claim
the deduction only II she files
a JOINT return with her hus-
band. Furthermore, the deduc-
ton must be reduced by the
amount the combined adjusted
gross income exceeds $500.
Thus, II the combined adjusted
gross income Is 5000. the de-
duction must be reduced BY
$500. And you do not get a Nat
deduction Of s600-only the
amount you actually spent upI
70 that figure. The child care
payments cannot be made to q
person whom you claim as a.
dependent.
Miscellaneous - This Is n
catch-all category where you
may be able to find some tax
savings. 1t includes most Of
your job-connected expenses
which you have not claimed on
page I Of the form 1910.
For instance. II you work for
salary or wages and your lob
requires the use Of small tools.
This Is The place to deduct the
cost Of those tools. The same
applies to special uniforms
which you have TO buy your
self. safety equipment. etc.
You can deduct dues to a /!
union or professional society.
fees to employment agencies,
the cost Of entertaining Gus
tomers--where your firm did
not reimburse you-and alimony
or separate maintenance pay
ments.
You cannot deduct the cost
OF travelling TO and from work, /
no matter how far and how ex-
pensive 1t might be. You can't
deduct educational expenses.
And you can't deduct the cost
Of entertaining friends.
After you have itemized all
the personal deductions per-
mitted by law. compare the
total with 10 per cent Of your
adjusted gross income. Then
either take the standard 10 per
cent deduction. or itemize your
deductions. whichever gives
you the biggest saving.
The next, and last. article in
this series will point up some
common mistakes made by tax
payers in filing their returns.
and some tips that may keep
you out Of trouble with the tax
collector.