East Cleveland leader. [volume] (East Cleveland, Ohio) 1942-1970, 1963-02-14
Lawyers
Present Tips
on Taxes

VII uOASS
EDITORS NOTE: This legal
column is prepared by the at
torneys of Ohio under tho
supervision of the State Bar
Association. Every effort is
made to have each fact ac-
curate IN the Interpretation of
the lotC.
The preparation Of income
tax returns requires that you
do little thinking, a little
reading of rules, and a little
searching for the books and
records you should have been
keeping during the taxable year.
This is the first in a series of
informative articles, prepared
under the supervision of the
Ohio State Bar Association, to
assist you in accomplishing
your task.
Generally, you must file an
income tax return if you re-
ceive gross income Of $500 or
more during a calendar year.
However, if you have reached
65 years-of-age by the end of
the calendar year for which
you are filing your return, you
need not file a return unless
you received over $1,000 in
gross income. These rules apply
whether you are married or
single, a minor or an adult.
What's Included
Gross income refers to all
amounts which you received
for work you perform and also
includes income and profits
which you receive from the in
vestment and sale of property
or savings. Income from saw
ings includes interest credited
to your savings account, wheth-
err or not you withdraw it.
Gross income does not include
amounts received by you as
Social Security or Railroad Re-
tirement pension benefits, gifts,
inheritances or workmen's COM
pensation benefits.
The specific form you use to
submit your return is matter
of personal choice with you
based upon the type of income
you have, the type of exclu-
sions you claim. and the amount
Of deductible expenditures you
have incurred.
Two Forms Available
This year there are two in
come tax forms available. the
1O4O and the 1O4OA. Form
1040A, the "punch card" form,
is by far the simpler of the two.
However, it may only be used if
your income was less than
$4,000 and consisted entirely
Of wages reported on your
withholding statement (Form
WY and not more than 5000
Of total dividends, interest, and
other wages not subject to
Withholding. A husband and
wife may file a joint return on
Form 1040A if their combined
incomes do not exceed these
limits. Form 1O4OA also may
not be used if you itemize de-
ductions, claim dividends re-
ceived credit or a retirement 1
income credit or claim an ex-
clusion for "sick pay"
Form 1O40 consists Of two
pages. If your income is only
from salary and wages and
not more than 5000 Of dividends
and interest, you need only file
pages l and 2. If your income
is not all of this type, the ap-
propriate separate Schedule B
Supplemental Schedule of In
come and Credits) C profit or
Loss from Business or Profes-
sion), D (Gains and Losses from
Sales or Exchanges of Proper
ty) or F (Schedule Of Farm
Income and Expenses) should
be used.
Must Report Facts
Our tax laws are self-assess-
ing in nature. This means that
you, as the taxpayer, have a
duty and obligation to report
the facts and circumstances
surrounding your receipt of in
come. The majority Of simple
tax returns can best and most
properly be prepared by you,
the taxpayer, after studying
the instruction booklets avail
able to you.
The Internal Revenue Service