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Geneva NY Finger Lake Times 1980 Jan 1980 - 0260

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Geneva NY Finger Lake Times 1980 Jan 1980 - 0260 Powered By Docstoc
					  More taxpayers allowed child care credit
   More taxpayers can claim the        divorced or separated parent who        child's or disabled dependent's              which should be attached to the
credit for child or disabled '         has custody of a child under 15,        care; (2) must have incurred the             return.
dependent care expenses on their       even though the parent may not          expense in order to be gainfully                Additional information is
1979 tax return as a resujt of a       be entitled to a dependency ex-         employed; and (3) must have                  available in the free IRS Publica-
change in the law, the Internal        emption for the child. The parent       maintained a household that in-              tion 503, Child and Disabled
Revenue Service says.                  claiming the credit must,               cluded one or more qualifying in-            Dependent Care, which may be
   Payments made to a relative,        however, have custody for a             dividuals. Qualifying individuals            ordered by filling out the order
including a grandparent, unless        longer period during the year           are dependent children 15 years              blank in the tax package or from
the relative is the taxpayer's         than the other parerSr A deserted       of age, a disabled spouse otrs               yourlocal IRS office. -
dependent child or under 19            spouse is eligible for the credit       disabled dependent of any age.
years of age, now qualify for the      when the deserting spouse is ab-          To claim the credit, taxpayers
credit.               4
   These payments to relatives
                                       sent for the last six months of the
                                       taxable year.
                                                                               must file Form 1040, even if they
                                                                               do not itemize deductions. The
                                                                                                                                'Understanding taxes':
                                          The credit is 20 percent of eligi-   credit is computed on Form 2442,
may have to be covered under
social security..                      ble expenses. The .maximum                                                               a high school course
   The child care credit is
available to married couples who
                                       credit that may be taken is limited
                                       to $400 for one dependent and to
                                                                               Help with returns                                                                   ing, "Understanding Taxes" j2
                                                                                                                               Approximately five million
file jointly, where one spouse          $800 for two or more dependents.         The IRS sponsors Volunteer In-                                                    covers the 1040A line-by-line. o»
                                                                                                                            high school students will learn
works full-time and the other             To qualify for the child and         come Tax Assistance (VITA) pro-                                                     The course then explores the <
                                                                                                                            how to fill out an income tax
works part-time or is a full-time       disabled dependent care tax            grams in many neighborhoods.                                                        regular Form 1040; Schedules A Z!
                                                                                                                            return as part of their curriculum
 student, or where both work part-      credit, a taxpayer (1) must be         Call your local IRS office to learn                                                 and B for itemizing deductions L
                                                                                                                            this school year, the Internal
 time.                                  employed or in active search of        where a VITA center is located                                                      and listing interest and dividends;
                                                                                                                            Revenue Service says.
   The credit also applies to a         employment while paying for the        near you.                                                                           and other important information,
                                                                                                                               The vehicle for this tax in-
                                                                                                                            formation is an IRS-sponsored          including the merits of filing sing-
                                                                                                                            course called "Understanding           ly or jointly when married,

      Deducting medical expenses                                                                                            Taxes," offered free to any high
                                                                                                                            school interested in participating
                                                                                                                            in the program. During the past
                                                                                                                                                                   estimating taxes, and correcting
                                                                                                                                                                   or amending previous returns.
                                                                                                                                                                      The "Understanding Taxes"
                                       the purpose of affecting any            by a doctor, health club dues,               school year, approximately             course usually lasts four to six
   You may deduct the medical
                                       structure or function of the body.      maternity clothes, or diaper                 24,000 schools took advantage of       weeks in most high schools.
 expenses you paid during the ye-
                                          In general, deductible medical       service.                                     the course.                            Study guides, teachers' manuals,
 ar, to the extent that they exceed
                                       expenses include your payments              Expenses for transportation that             "Understanding Taxes" in-          and two films are supplied free
 three percent of your adjusted
                                       to doctors, dentists, psychiatrists,    are essential to medical care —               cludes a brief history of how the     by the IRS. Since the course is
 gross income. If you were reim-
                                       etc.; payments to hospitals for         such as getting to and from a doc-            Federal Tax System works by a         taught within the school's ongo-
 bursed by insurance or
                                       service, laboratory fees, x-rays,       tor's office — may be included in             discussion of the role of taxes and    ing curriculum — often during a
 otherwise, that amount must be
                                       e t c . , and payments for              medical expenses. These include               their relationship to the national     portion of social studies or
 subtracted from your medical
                                       eyeglasses, hearing aids and            taxi, bus, train, or plane fares.             budget. After this national over-      economics class — students may
 expenses.
                                       parts, dentures, crutches, etc.             If you use your car, you may              view. "Understanding Taxes"            be permitted to earn credit for
    Payments for the diagnosis,
                                                                               deduct the actual cost of your                concentrates on the individual's       taking it. School administrators
 cure, prevention, or treatment of         What are not allowed are
                                                                               gas, oil, and other operating ex-             tax rights and responsibilities.       interested in learning further
 a physical or mental illness are      things such as a trip taken to "get
                                                                                penses, or eight cents for each                 Since an individual taxpayer        details about offering an
 deductible as are payments for        away from it all," even if advised
                                                                                mile you use your car for this pur-           usually fills out a Form 1040A        "Understanding Taxes" program
                                                                                pose. You may deduct parking                  during the first years of tax pay-    should call their local IRS office.
                                                                                fees and tolls in addition to a set
                                                                                amount per mile. You must, of
                               A FULL                                           course, keep track of such                          Tests for dependency
                               SERVICE                <>
                                                                                expenses.
                                                                                    You may also include as part of             For a person to qualify as your    Canada or Mexico for some part
                                BANK                                            your medical expenses, subject               dependent, the IRS says the           of the year you claim the exemp-
                                                                                to the three percent limitation,             following five tests must be met:     tion; and,
                                                                                your payments for medicines and                 • Support Test — you must fur-        • Joint Return Test — you are
                It's So Much More                                               drugs that are more than one per-
                                                                                 cent of your adjusted gross in-
                                                                                                                             nish more than half the person's
                                                                                                                             support during the calendar year,
                                                                                                                                                                   not allowed an exemption for
                                                                                                                                                                   your dependent (such as your son
                                                                                 come. You may include the cost                 • Gross Income Test — his or       or daughter) if he or she files a
                     Personal I                                                  of medicines and drugs whether
                                                                                 or not prescriptions are required
                                                                                                                             her gross income for the year
                                                                                                                             must be under $1,000 (this does
                                                                                                                                                                   joint return unless the individual
                                                                                                                                                                   and his or her spouse are not re-
                                                                                 to obtain them.                             not apply to your child who is        quired to file a return but do so
            This is the advantage of doing bus-                                     There is only one exception to           under age 19 or is a full-time        only to claim a refund of tax
                                                                                 the 3 percent limitation on                 student);                              withheld
          iness with your Independent hometown                                   medical expenses. You may                      • Member of Household or
          bank.
                NOT decisions made in some
                                                                                 deduct, without that limitation,
                                                                                 one-half of what you paid for
                                                                                                                             Relationship Test — if a person is     Records to keep
                                                                                                                             a member of your household and
                 distant money center bank                                        medical insurance during the               lives with you for the entire year,     • receipts, canceled checks
                                                                                  year, or $150, whichever is less.          the person need not be related to     and other evidence to prove
                 NOT records kept at some                                         The rest of the payment for                                                      amounts claimed as deductions;
                                                                                                                             you for you to claim that in-
                     cenfrciliie^TocafTorf-                                       medical insurance may be in-               dividual's exemption;                 —•e^mrdocumento te preve
                                                                                  cluded with your other medical                • Citizenship Test — your          overpayment of tax if a claim for
                                                                                  expenses subject to the three per-         dependent must be a U.S. citizen      refund is made;
            At our bank you find your friends                                     cent limitation.                           or resident, or a resident of            • copies of tax returns filed.
          and neighbors serving the community's
          banking needs with friendly courteous
          service.
                                                                                                    Charitable donations are deductible
            No big bank can provide the same                                          Generally, you may deduct               deduct your contributions to most     reasonably charge if you were
          personal touch!                                                          contributions you paid to any              religious organizations, a com-       selling the property.
                                                                                   qualified organization establish-          munity fund, Boy Scouts, the
                                                                                   ed and operated exclusively for            YMCA, the Red Cross, the                 Bear in mind that a contribu-
                                                                                   charitable, religious, educa-              American Cancer Society, CARE,        tion is only a contribution at the
                                                                                   tional, scientific, or literary pur-       Veterans of Foreign Wars, etc.        time of its delivery. Pledges are

                 THE LYONS                                                         poses, or for the prevention of
                                                                                   cmelty to children or animals; to
                                                                                                                              You may not deduct contribu-
                                                                                                                              tions to civic leagues or chambers
                                                                                                                                                                    not contributions until you make
                                                                                                                                                                    payment. Also, if a contribution
                                                                                   fraternal organizations if the con-
               NATIONAL BANK                                                       tributions are used for charitable
                                                                                   purposes; to veterans' organiza-
                                                                                                                              of commerce.                          results in a personal benefit, all or
                                                                                                                                                                    part of it may not be deductible.
                                                                                                                                                                    For example, if you buy a $50
                                                                                                                                 If you donate property other
                         Lyons, New York                                           tions, or to governmental agen-            than money, the IRS expects you       ticket for a church benefit and
                       Member of the F.DJ.C.                                       cies that will use the gifts ex-           to base your deduction on the fair    receive a meal at the function
             "*»»r M i I M W N H e m e * * * Bmtk far m r I M ttmn"                clusively for public purposes.             market value of the property; that    worth $15, you can only claim
                                                                                              This means that you may         is, the amount you could              $35 as a charitable contribution


                                                                                Untitled Document




                                                                                                    Thomas M. Tryniski
                                                                                                    309 South 4th Street
                                                                                                    Fulton New York
                                                                                                    13069


                                                                                                    www.fultonhistory.com

				
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