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About Oregon daily emerald. (Eugene, Or.) 1920-2012 | View Entire Issue (March 30, 1977)
IRS officials provide latest tax information I JUOl dl L/UI IvJ II 1C UUI I IfcJl and the state Department of Re venue has some suggestions and tips to ease the headaches for last-mintue filers. Taxpayers are overcharging themselves and delaying receipt of their state income tax refunds, reports John Lobdell, director of the revenue department. Lobdell says this has caused about twice as many returns with errors than were found in previous years. Most of the errors are on the Oregon short form, Form 40-S. Four of the most common errors include: ■ • Failure to claim a deduction for federal income taxes. Persons making this error wind up paying more taxes than necessary. The federal tax deduction is claimed on line 12. • Deducting amount of federal taxes withheld rather than the amount paid. This error reduces a person’s state income tax and he or she may claim a refund that is too large. These refunds are held up and corrected. • Claiming a standard deduc tion that is too small. This error also results in taxes that are higher than necessary. When claiming the standard deduction on line 13, taxpayers should calcu late 13 per cent of their adjusted gross income then compare that figure with the amount of their maximum allowable deduction (found in a table on page 15). They can claim the larger of the two amounts, but not more than $1,500. • Not claiming any personal ex emptions. Here is another error that increases a person’s tax. Each taxpayer should check to see that he or she has claimed $750 for each personal exemption on line 14. More low-income workers can claim an Earned Income Credit of up to $400 due to changes in eligi bility requirements made by the Tax Reform Act of 1976, accord ing to Ralph Short, the Internal Taxpayers bewa Revenue Service district director for Oregon. To qualify for the credit, a worker’s total adjusted gross in come must be less that $8,000. In addition, workers must also have paid over half the cost of keeping up a home — owned or rented. Eligible workers must file a fed eral income tax return, Form 1040 or 1040A, to claim the credit, even if they are not normally required to file. For those whose total and earned income for 1976 was $4,000 or less, the credit amounts to 10 per cent of their earnings, up to a maximum of $400. Individuals whose incomes fall between $4,000 and $8,000 must reduce the credit by 10 per cent of the amount of total income or earned income, whichever is larger, more than $4,000. While several persons together may contribute over one-half the support of a dependent, only one taxpayer is qualified to claim the dependent’s exemption, accord ing to Short. If two or more persons support the dependent, but one pays more than one-half the support cost, that individual receives the ex emption, assuming the other de pendency tests are met, Short said. If no one person contributes more than one-half of the support cost, but a group of two or more persons together contribute more than one-half the costs, the group must choose one of its members to claim the exemption, Short con tinued. The taxpayer who claims the exemption must have contributed more than 10 per cent of the total support costs and musts meet all other dependency tests. The remaining contributors must complete and sign Form 2120, “Multiple Support Declara tion,” stating that they will not claim the exemption that year. This form must be filed with the Art Supply Specials Staedler-Mars Technical Pens 20% Off Koh-i-noor pen and per; sets up to 20% Off Faber Castel pens and pen sets 15% Off “Design Marker” Art Marker reg $1.10 NOW 79c pens BRUSHES Simmons Brushes 25% Off Clearprint Drafting Vellum up to 12% Off Bienfang tracing papers up to 15% Off Strathmore—drawing and watercolor pads 25% Off And Vemco Drafting Instruments—compases, di viders, etc. all V2 price U of O Bookstore £££££ Open M-F 8:15-5 p.m., Sat. 9 a.m.-1 p.m. 17 more days until April 15! re — income tax return of the person claiming the exemption, Short said. Different rules may apply in the case of divorced or separated parents. Taxpayers who intend to claim expenses for using a room at home as an office for a deduction on their 1976 federal income tax return should familiarize them selves with new, more restrictive provisions, said Short. The Tax Reform Act of 1976 now permits deductions for busi ness use of a home only if the part of the home claimed is used exc lusively and regularly for busi ness. The room also must be the self-employed taxpayer’s princi pal place of business, or used to meet clients, customers or pa tients in the normal course of bus iness. Short also pointed out that de ductions for the expenses of hav ing an office at home, such as rent and light, cannot exceed the in come produced in that office. Taxpayers who drive their au tomobiles for business, moving, charitable or medical purposes may be able to deduct such ex penses on their tax returns. Taxpayers who keep records of actual cost may claim operating expenses and fixed expenses, such as depreciation and insur ance, for business use of their au tomobile. For deductible nonbusi ness uses, only operating ex penses may be claimed. For more details concerning business expenses, the free IRS Publication 463, “Travel, Enter tainment and Gift Expenses,” is available from local IRS offices. Publications outlining moving, charitable and medical deduc tions are also available free from the IRS. These publications can be obtained at local IRS offices or by calling the toll-free “Forms Order” number listed in all Oregon telephone directories. uregonians can earmark a aoi lar of thei r taxes for the 1980 Pres idential Election Campaign by checking a box on the front page of their income tax return. IRS figures show that last year approximately 15 per cent of Oregonians filing tax returns elected to contribute, designating $369,840 for the 1976 Presiden tial Election Campaign Fund. Thus far, this year 30 per cent are marking “yes” with 37 per cent designating “no” and 33 per cent failing to mark either “yes” or “no.” A tax assistance program for people aged 55 or older is being offered by Celeste Campbell Senior Center and the Eugene Parks and Recreation Depart ment. Trained volunteers are availa ble 9:30 a.m. to noon on Tuesdays and 9:30 a.m. on Thursdays until April 15 to help seniors with state and federal tax forms. Those interested in the service should phone Campbell Center at 687-5318 for an appointment. EARS and SHOULDERS YOU’VE GOT THEM! WE NEED THEM! Volunteer at the Information Grievance Center We need your ears to listen to Student questions and problems and your shoulders for students to cry on. Help operate a facility run by students FOR students. Have FUN while learning more about the university. Credits Available through Student Program Management Cl 400 (see the SEARCH catalog for more information) Contact Cathy of the SUAB, Suite 4 EMU, x3724 [GEORGE BENSl EMU Cultural Forum presents George Benson April 1st 8:30 PM Mac Arthur Court Tickets: $5.00 U of O Students $6.00 General Public $6.00 Reserved $6.50 Day of Show (all sales) Tickets available at the EMU Main Desk and Everybody’s Records Double-Tee nr Concerts li
