Image provided by: University of Oregon Libraries; Eugene, OR
About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Feb. 10, 1956)
HOHT MTOTOHD (OREGOW) MAIL TRIBUNE Friday, February 10, 1958 mount Paid as Wages During Sickness Or I Note: This u the fifth nd lmay not apply her unused ex- ch by the. commoner of, . ' . . u,u-s: Editor's last di-spMch internal revenue on problems arising irora the iinnr of income tax returns. Today's dispatch tells how to report income from dividends and income re ceived v.hen sick or retired. By RUSSELL C. HARRINGTON w Commissioner of Internal Revenue Written Fo The United Prets Washington (U.R) Income when you are sick- or injured, income from dividends, and re tirement or annunity income are all subjects which continue to give taxpayers trouble in filing their returns. On the basis of questions which taxpayers have been ask ing at Internal Revenue Service offices in all parts of the coun try, I shall try to set the picture straight. . Sickness and Injury Accident or health insurance payments and amounts you re ceive as compensation for your injury or sickness, are exempt from tax. The new law also permits you to exclude rrom your income up to $100 a week of pay you re ceived under a wage continua tion plan while you were sick or injured, if it causes you to be absent from work. But there is a special rule for sickness. The pay you receive for the first week of absence from work can not be deducted unless you were hospitalized at least one day of . the absence. The hospitali zation does not have to fall within the first week of sick ness; just sometime within the period of absence - from work This first week proviso does not apply in the case of absence due to injury. The amount you may exclude from your income is limited to the amount of wages, or pay ments' in . lieu of wages, which you received for -your absent time, " but in &o .'.ease may you exclude more than $100 per week. A Few Examples If you are sick at home for seven,; days or less, the pay you receive is fully taxable. .If you are sick at home for more than seven days, the pay you receive for the time after the first week has run out may be excluded from your income one-fifth of your weekly pay (but not more than $20) for each day missed, if : you're on a five-day week; one-sixth (but not more than $16.67) if you're on a six-day week. ;" . li you are nospnaiizea at least one day of your sickness, you may exclude from income the pay you receive for the en tire period of sickness, up to the $100. per week limit. If you are absent from work because of injury, your pay for the entire time may be excluded from your income; again, up to the $100 per week limit. If you make any exclusion from your income for .sickness or injury, be sure to attach a statement to your return ex plaining the circumstances. Dividends '; The 1954 law cut taxes on your income from dividends in two ways. It allows you to ex clude the first $50 of dividends ytfu received during the year, and it allows you a credit against your tax, up to 4 per cent of the amount of dividends above $50. Generally speaking, this liber alization applies to dividends paid on the capital stock of U.S. corporations. It does not include so-called "dividends" paid on withdraw able savings accounts at savings and loan associations. They are treated as interest income. Divi dends paid by mutual life insur ance companies on their policies auu uy ijic vctcidua nuiiiillis- tration on GI life insurance policies are nothing more than reductions of premiums paid and are not Considered income for tax purposes. A Few Examples A stockholder received $40 qualifying dividends last year. He reports this but need not pay tax on it, because the law lets him exclude up to $50 of divi dends. A stockholder received $100 of dividends last year. He reports the $100, excludes $50 and pays tax on the other $50. On the $50 included in taxable income, he can take 4 per cent of it as credit against his final tax liability. . A man received $60 in divi dends and his wife received $40. He reports $60, excludes $50 and pays tax on $10, and takes the 4 per cent credit on the "taxed amount. She reports and excludes her entire $40. She elusion of $10 to her husband's $10, even though they file a joint return. Retirement Pay and Annuities Provisions for this type of in come are somewhat like those for dividends; you need not pay tax on part of it, and you may be able to claim a tax credit for some of the amount you do pay tax on. You need not be retired to enjoy these tax benefits, but in some cases you must be 65 or older. Generally speaking, any con tributions you made towards a pension through the years comes back to you tax-free. On the other hand, if your em ployer footed the bills, you are probably taxable for the pay ments as you receive, them now. However, if you paid taxes on the contributions he was making to your pension fund, or if you otherwise paid part of the cost, you may now receive tax-free the share you paid in. .- Those are the general rules for pension or annuity income for which you are not taxable. The law also provides rules for the amounts on which you do pay tax. Under certain conditions, it allows you a credit against your tax. The credit is 20 per cent of your retirement income, up to a maximum of $240 per per son. To be eligible for this credit, you must have reached 65 by the end of the year (unless you were a civilian employee of the fed eral, or a state or local govern ment, and are receiving income under a public retirement sys tem). Includes Pension If you are 65 or older, retire ment income, for the purpose of computing your tax credit, in cludes pensions, annuities, inter est, dividends and rent. If you are under 65 -and are a retired government worker, your only retirement income on which you can get a credit is that which you receive under a public retire ment system. In neither case does retirement income include money you are earning, now, and it may be necessary to deduct part of your current earnings in figuring out your retirement credit. . One further qualification: You or your deceased husband or wife must have earned more than $600 in each of any ten years before 1955. The ten years do not have to have been consecu tive. To end this series, which I hope has been helpful to you, I would like to repeat several several points. - . njiiry Explained by Dncome Tax Man First, file your return as early as you can. It works better for you and us. Second, our job is to collect every cent of tax due the government, but nothing more. Be sure you have figured your tax correctly and have ex plored thoroughly the various sections of the law which may apply to you and through which you are entitled to seek relief. Collecting taxes isn't a popu lar job. But, we've got to do it. Don't wait until the deadline and I want to repeat that it's April 16 at midnight and fill out your form carefully. Errors or filing late can make you liable for payment of interest or penalties. '" "' . ' '' ""' k ' ifiiff-i'iiiniwiiiiiinBwiiiiiiiiwiMiMfiiwfc iiiihiiihi n ini' "liiiinrii iiiJ m k . ..?.TA INTRODUCING HERSELF at Los Angeles Democratic meet ing, Singer Pat Mowry, 23, third cousin of Adlai Stevenson, meets presidential candidate. She is former Miss New Hamp-' ehire and was a Miss Universe contestant. (International) On The Side (Distributed by King By E. V. Durling Features Syndicate, Inc.) My distinguished colleague, Louis Sobol, has bitterly com plained that my astrological dis sertations have a tendency to ca'use dissenticn between him and his beautiful ; and well streamlined matrimonial mate. Sobol threatens violence if I do not cease reporting disparaging claims made by astrologers as to the character of females born under Scorpio. I view this situ-, ation with alarm. Already in numerable Scorpions have threatened to slap my face. Now if I meet a Scorpion . and her husband, she is likely to slap my face and her spouse will add to my injury and discomfort by giving me a kick in the pants. However, such are the dangers those embarking on. a journalistic- career must be prepared to face. I will not be intimidated. The column must go on! Still I could try to square myself. Therefore I call attention to the fact that I have on many occa sions stated that Scorpio women are rated the "It girls of the Zodiac." For confirmation of this claim, see Grace Kelly, Mrs. Louis Sobol,. Vivian Leigh and Hedy Lamarr. Their virtues more than compensate for their faults. .They are sincere. When a Scorpio girl calls her husband, "darling," she really means it. When she grows, affectionate, she puts her heart, and soul into it. When the poet said, "Each kiss an earthquake," he was un doubtedly referring to a Scorpio girl. On the other hand, when a Scorpio grows angry, she puts her heart and soul into that,, toq. When-she throws things at Jier husband, she doesn't miss. Still, rage is brief. She is soon in the mood to kiss and make up. Kiss ing and making up with a Scor pio girl is a touch of paradise. Or so say the stargazers. . Asides The first Hollywood "double ring," ceremony was that of the wedding of George Jessel and Norma Talmadge . . . More ci gars are manufactured in Penn sylvania than in any other state . . . What are your wife's meas urements? Are they by any Why Suffer Longer? When Others Fail COME TO US ACT NOW! Our Nature's HERB remedies will help you to re-. gain your good health. Our remedies have been successful in aiding the sick all ever the state tor over 18 years. ' 1 B. FONG Herb. Specialist Remedies for disorders, sinuses, heart, liver, stomach, gas and ulcers, constipation, piles, asthma, female complaints, kidney, bladder, blood, rheumatism, back and headaches. For Male, Female and Children. BRANCH OFFICES: Aibany Saiem Eugene North Bend CHARLIE CHAN OFFICE OPEN SUNDAYS ONLY 12 NOON TO 4 P.M. CHINESE MEDICINE & HERB CO. 624 S. Riverside Medford chance bust, 36; waist 23 and hips, 36? If so, she rates the classification of "three-dimension girl.'" Asking Queries from clients. Q. Did Jack . Benny ever team up with with Nora Bayes in vaudeville? If so, when? A. Jack played in a vaudeville sketch with Nora Bayes. That was about 39 years ago.-. . . Q. Was Portia, the her-H oine of The Merchant, of Ven ice," a blonde or a brunette. A. She was a blonde. Shakespeare said of Portia,' "Her sunny locks hang on her temples like a gold en fleece.". Passing By Dan Arnstein. Taxicab tycoon and deep student of transporta tion and traffic. During World War II Dan was assigned by the United States government to straighten out the traffic, on the Burma Road. . . . Fred Caposel la Jr., son of the. New York race caller, who describes the, run ning of the races in impeccable English and with a slight touch of a Harvard accent. Fred Jr. is a "ham" radio operator. Such a competent one that he has a rec ord . of contacting 100 different countries. Please Note -It is frequently claimed the wage earning career of the aver age film star is. comparatively short. Let's look ' at the record. All the stars voted the 10 fcest box -office attractions of 1942, just about 15 years ago, are still drawing paychecks. The 10 best of 1942 were: 1 Abbott and Costello. 2. Clark Gable. 3 Gary Cooper. 4 Mickey Roon ey. 5 Bob Hope. 6 James Cag ney. 7 Gene Autry." 8 Betty Grable. 9 Greer Garson. 10 Spencer Tracy. Jealous Mate Holds Three as Hostages Sinton, Tex. (U.R) A "crazy jealous" husband, who held his pregnant bride and two other persons hostage for two hours in a barn surrounded by offi cers, faced kidnaping, robbery, burglary and car theft charges today. . ' , ; A funeral director and a po lice chief got him to release two of his hostages a brother and sister by making up a phony story that, their mother was dy ing of a heart attack and wanted to see them. :The police chief, F. N. Turn bow lives next door to the brother and sister, who with their mother were kidnaped from their homes . yesterday by Leonard . Rollins. . t ' Rollins, 24, later told Turn bow that he had been" in asylums twice and in reformatories twice. NO JOt TOO TOUGH FOR PENNSY'S LABOHA70RY-TSTEO for grvKng war! DEStON-JESTiD tor vntvrpamod comfort? JOB-TESTED for oH-rovnd robes .' NEW LOW PRICES ! ! MEN'S WHIPCORD UNIFORM SETS 100 WOOL PANTS 29-42 MATCHING JACKETS ... ...! 4.75 Finest T7-oz. Virgin Wool Long Wearing Cravenette Finish Size engineered for perfect fit 100 ORLON Machine Washable PANTS 29-42 Completely Washable Highly Acid Resistant Resists Soils Sheds Showers Forest Green and Sage Gray P8 Si Jf Top Quality Payday HEAVY DUTY BIB OVERALLS 98 sizes 30-50 EXTRA QUALITY FEATURES Durable, EXTRA HEAVY denim for long, nigged wear! : Sanforizedt to retain fit after many tubbings! Triple stitched extra strong seams! Bar tacked at all strain points! Full cut for plenty of free action ! Heavy duty pockets for every need, conveniently placed! Parva buckles and snap fastenert for quicker, easier action! JOB TESTED by Millions of working men every day! (Maximum shrinkage 1 Penney's SUPER WORK CLOTHES VALUES Sturdy Leather Palm Work Gloves ...98c Wool-Nylon Boot Sock 79c Colorful Sweatshirts, 36-46 .1.69 Black Jeans, 29-44 ...2.98 Hickory Striped Shirts, 14l2-17 1.98 Canvas Work Gloves 5 pr. 1.00 Cotton Underwear, 36-46 . ...... . . .1.79 Men's Garters ... 59c Cotton-Nylon Work Sock . . . . .3 pr. 1.00 Flannel Shirts, S, M, L 1.33 Colorful Bandanas ... . 5 for 1.00 Wool Felt Hats 2.49 completely Sanforized f, even the foot-deep boatsail pockets! Penney's own proportioned fit strong and durable stitching extra heavy duty zipper fly vat dyed for long color life mercerized to stay lustrous rnony -colors at no extra cost 8Vz ounce pants f ft I 49 pvV'V',f''i 6 ounce shirts BETTER THAN EVER BIG MAC9 MATCHED WORK TWILLS These are the specially constructed Penney twills you'll want on the job and off . . . because they're quality built for long, rugged wear. PanH sires 29 to 46 Shirt sizes 14V4 to 18 f Maximum Shrinkage 1 STURDY BIG MAC WORK SUITS 4.49 Durable Big Mac striped her ringbone work suits in propor tioned sizes. You'll go for Pen ney tough construction! San forizedt. Sizes 30 to 46 4 TOUGH PAY DAY CARPENTER OVERALLS 4.98 Penney's Pay Day quilted knee carpenter overalls in 10- ounce white duck. Tough con struction with plenty of pocket space. Sanforizedf Sizes 3 to 48 1 ' t V SLIM FITTING WESTERN JEANS 2.79 Slim, tight and low! Penney's Foremost western style jeans of sturdy . ZA -ounce denim. Sanforizedt and ruggedly con structed. Sizes 29 to 40. BIG MAC9 CHAMBRAY WORK SHIRTS 1.69 Construction plus in Penney's Big Mac 5.5 ounce chambray work shirrs. Triple stitched seams and non-rip sleeve fac1 ings. Sanforizedt- Sizes- 1 4 V2 to 17. ' ROUGH RUGGED COTTON WHIPCORDS 2.98 Big Mac 11 -ounce whipcord work pants . . . practical for the man who works hard . . ... expects long wear. Penney's quality construction. Sizes 30 to 50 1 HEAVY DRILL PAINTER'S OVERALLS 2.79 Pay Day painter's overalls of heavy white drill. Reinforced with strong stitching. Fully Sanforizedt, even the : deep pockets. Sizes 30 to 46
