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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Jan. 30, 1957)
Questions About Extra Exemptions on Income Tax Returns Explained for Payer Editor', not: This li the third of five rtl-les to he Ip taxpayers In ntaltlnc out their federal income tax returns. By RUSSELL C. HARRINGTON Commissioner of Internal Revenue Written For United Pres. Washington (U.PJ You are $600 exemption, which means you do not have to pay federal Income tax on S600 of your in come. Your wife is another, on your return if you file jointly, on her own if you file separately, but not on both. Beyond this basic exemption for the taxpayer, we get into a number of questions covering such things as support of elderly relatives, school age children who earn money, divorced cou ples, survivors of persons who have died, and extra exemp tions for the aged and blind. Each taxpayer gets an extra exemption for her as a depend- you may legally claim that extra months of the year, or who is in S600 for age in your return for 1956. Exemptions for dependents are figured differently than for hus band and wife. For example, a taxpayer who supports his 70-year-old mother is entitled to just one S600 exemption for her and nothing extra for her age. Only Exception For a person to qualify as tax payer's dependent, the taxpayer must provide more than one half of his or her support. The only exception to this rule is where several persons contribute to the support of an individual. For example, if several sons and daughters support their mother, and none of them con tributes more than half the sup port, they may designate one of their number to claim the S600 $600 if he is 65 or older, and still another $600 if he is blind. The $600 extra exemption for blind Bess can be claimed by the tax payer at any age. The exemption for blindness applies only to the taxpayer, husband or wife or both, but not to dependents. The Internal Revenue Service perhaps rates you older than you think you are, by one tfay, and It may be money to you. You are considered to add a year to your age on the day before your birthday. So, if your 65th birth day fell on or before Jan. 1, 1957, ent. The person designated must contribute more than ten per cent of the support, and all the others who contribute more than ten per cent must file a declara tion that they will not claim the exemption. Such a declaration is made on Form 2120, available at any Revenue Service office. The law permits a child under 19 or a full-time student of any age to be claimed as a depend ent. The law defines a full-time student as one who is engaged in full-time study at a recog nized school for at least five Around Hollywood By ALINE MOSBY United Frees Correspondent ejaJ h mi mi 1 Hollywood U.R They used to joke around town that TV would turn movie studios into bowling alleys. The virtual shut down of RKO studio is a step toward that sad possi bility. Thanks . to the revolution in show busi- Aiino Moby ness, me gates through which passed such stars as Ginger Rogers, Cary Grant and Fred Astaire will soon be closed. RKO executives announced its backlog of pictures, would be taken over by Universal-International for distribution. RKO will continue to produce a few pic tures, the announcement said. And financial sources indicated it was necessary to continue some operation for three years so the owner, tire magnate Tom O'Neil, can collect a $10 million tax loss. The big beige stucco studio on the corner of Gower st. and Mel rose ave. in the heart of old Hollywood apparently has seen its last days of movie-making. Four movies are in the prepara tion stage. "Galveston", 'The Naked and the Dead", "Rachel Kaid" and "Ten Days of Au gust." Whether they'll all go be fore the cameras is not known, and all are slated for out-of-town location shooting. Sound Stages Empty The publicity, prop set, and w a r d ro b e departments are closed. The company's 32 film exchanges throughout the coun try folded, with some 800 em ployees pink-slipped. The sound stages are empty. The studio, first called Robertson-Cole, was built by an Eng lish firm on 1V2 acres of dusty grain fields in 1920. In 1922 the studio became FBO, standing for Film Book ing office. RCA purchased con trol in 1929 and merged with the Keith-Albee vaudeville cir cuit, giving the film factory the name of RKO, for Radio-Keith Orpheum. AKO merged with Pathe in 1931 and acquired the Pathe Culver City studio built by the late director Thomas Ince. After World War II the stu dio didn't combat the general de cline of the movie business. Mil lionaire Howard Hughes took over in 1948, but apparently was busy with other interests. Pro duction ground to a virtual standstill except for his own pro duction of "Jet Pilot." which till hasn't been released. O'Neil bought control in 1955. Difficulty Explained Why did RKO fall Into trouble? Trade sources point out the big business in theaters to day Is done by supercolossal block busters such as "Giant," dramas with big names like "I'll Cry Tomorrow" or 'The Rain maker," controversial stories such as '"Baby Doll" or the pro gram picture such as the Ma and Pa Kettle series and science fic tion potboilers. Movie industry circles be lieve the RKO difficulty is the first of a series of cut-downs. Republic Studio also has closed its film exchanges. MGM re portedly is considering selling some of its mammoth backlog in an attempt to cut down on a staggering overhead. Stories that Warners and 20th Century-Fox would merge to share facilities also have been circulated. In 1946 the industry employed 24,000 workers! now it's 11.000. RKO workers said they under stood their Gower st. studio would be converted into a tire assembly shop. Weather Still Hides Faie of Big Airplane Montreal (U.R) Weather and the rugged crags of a mountain range still hide the fate of 62 persons aboard a big airliner that vanished more than six weeks ago. The mystery of what happen ed to Trans-Canada Airlines flight No. 810 may never be solved. Another TCA plane disappeaered 10 years ago in the same snowy wilderness and nev er was found. Perhaps there is one chance In many millions that there are still survivors among the 59 passengers and three crew members on the four-engined North Star. Daylight searches still are made when the weath er breaks for a day or two. But no trace has been found to explain what is now listed as the worst civil aviation dis aster in Canadian history. Korean Veteran Bonus Resolution Presented Salem (U.R) A joint resolu tion calling for a constitutional amendment to provide a bonus for Korean veterans or their de pendents has been introduced in the Oregon House. Sponsors of the resolution were State Reps. Norman R. Howard and William A. Gren fell Jr. ard Sen. G. D. Gleason, all Portland Democrats. The resolution provides for a maximum bonus of $600 to be fi nanced by selling bonds and levying a state tax. ' One of the few asphalt depos its in the United- States is lo cated near Santa Rosa in New Mexico. one of several fulltime on-the-farm training programs. A child may earn money, even more than S600. And still be claimed as a S600 exemption on his father's tax return. The de ciding factors are that the child be under 19 or a full-time stu dent, and that the taxpayer who claims him must contribute more than half his support. However, if a child earns $600 or more he must file a return for himself. He may claim his own personal exemption on his own return. This means he ac tually qualifies as two exemp tions if someone else is footing more than half his living ex penses. One exemption on his own return and one on the re turn of the supporter. If a child earns less than $600 and his employer withholds taxes from his pay, then the child is entitled to a refund of those taxes. Like everyone else, he must file a return to get that refund. The law provides special tax rates for any individual who qualifies as "head of household." This term means generally an unmarried or legally separate person who furnished more than half the maintenance cost of a household which was also home during the entire year for (a) any related person who qualifies as the taxpayer's dependent or (b) your unmarried child, grand child or stepchild, even though that child is not a dependent. You may also qualify as a head of a household if you maintain a home elsewhere for your father or mother and either one of them qualifies as your de pendent. Household Costs The cost of maintaining a household includes such items as the rent, insurance, repairs, utilities, food. It does not in clude clothing, education, medi cal expenses and the like, even though you may pay them. Form 1040 must be used to claim the benefits of the lower tax rates for a head of house hold. If you are divorced or legally separated from your wife at the end of the year, you may not claim her as an exemption, even if you paid her support. When a question of depend ency comes up, remember that the dependent must meet five tests. First, you must have furn ished more than half of his or her support. Second, the depend ent's gross incomes must have been less than $600 for the year (unless the dependent is your child who is under 19 or a full time student). Third, the depend ent must be related to you, or a member of your household and living in your home. Fourth, the dependent must be a citizen of the United States (living any where) or a citizen of any coun try living in Canada, Mexico, Panama or the Canal Zone. And fifth, the dependent must not be making a joint return with his or her husband or wife. Tomorrow: You can claim de ductions for Hungarian relief, but not for political contribu tions; all about those puzzling deductions. Anti-Western Drive Visioned in Hungary Vienna U.PJ The puppet Communist Hungarian regime plans a massive anti-Western propaganda drive that may in clude "spy trials" of Western na tionals, according to reliable sources here. . Four Britons, one American and one Norwegian are impris oned in Communist jails. All but the Norwegian are being held incommunicado. Wednesday, January SO. 1937 MEDFORD (OREGON) MAIL TRIBUNE THREE Egypt Balks Efforts To Start Suez Talks London (U.R) Egypt has . sponse from Cairo. balked all efforts to start early talks on a Suez settlement, dip lomatic officials have reported. They said open and back stage moves to arrange direct negotiations among Egypt, Brit ain, France and other interested parties have met with no re- Britain and France have urg ed and are continuting to press for the resumption of full scale negotiations on an early settle ment of the Suez Canal prob lem. But the diplomatic sources said Cairo was "stalling" and taking its time before commit ting itself to a new round of direct talks. Stops Stomach Gas 3 Times Faster Certified laboratory terti (moo SELl-aKJ tablet! Mutrallie S timet a muck stomach acidity le one minute es many loading digestive tablets. Sot ELI-AM today lor the fastest ksowe reltet. XSt, Norblad Asks Probe On Price of Gasoline Washington U.R) The high price of gasoline in Oregon should be investigated by the United States Attorney General, according to Rep. Walter Nor blad. The Stayton Republican asked Attorney General Herbert Brownell to conduct a thorough investigation of '"strange check erboard pricing" which he said has resulted in heavy Increases ij in at-the-pump gasoline prices in ( his home state. Norblad said price reductions i have been granted for gasoline in Denver, Dallas and New Eng land where they are from 7 to 10 cents per gallon lower than in Oregon. The Congressman wrote Brownell: "If the stocks of gaso line were being materially re duced as a result of the ship ments to Europe, I could under stand a possible price increase on the West Coast, but this is not the case." m. The king of Sweden is requir ed to be a member of the Luth eran church. Clever Girl stops coughing all night Vvnen eoosfbci rV flowing' a eoM threaten to ruin ber night's rest and tear down i ' ""'-4', "v bar etreturth she - ?s; . Creomalsteii Cough Syrup. Creomnlsion perrmtt restful if xJPI aieeo because it tope trie tickle. , i iiSf ? .jr c"r raw . V "s : throat rnera- L .4 ! brann, clears iW orsntWng- pas- ' A it ,,! cT, relaxes tension. It works hard and fast to bring- you wel come relief, all without danfrer ous narcotics or antihistamines. CREOMULSION Li Contractors Equipment For Rent D-4 Cat with Dozer D-8 Cat with Dozer Motor Crans Back Hoes Motor Graders Draglines Clamshells Shovel Fronts MACHINE TRENCHING Gas Water Sewer Drain Installation or Repair Phone 2-5336 or 2-5897 MEDFORD, OREGON Kr Y 3 WHILE THEY LAST! V HOME APPLIANCE MOW First Come First Served Reconditioned S0J5O S4 13 Kenmore Admiral 30-Inch '55 Model RANGE F301T BUY General Electric Keivinator Hamilton Bendix Late Model Two Of These Here's A Good Buy s8750 $11770 $5270 $5270 lL'a-ilat New 1957 G-E AUTOMATICS Several Models To Choose J From in the NEW Washers ALL FULLY GUARANTEED DISCOUNTED UP TO . . . Reconditioned WRINGER WASHERS Two To Pick From Your Choice, Only MAYTAG RECONDITION Philco Console Hallicrafters Gi. Console G.E. Table Model 21-Inch Mahogany 21-Inch $ Console Swivel $ Base Dark Glass A Tube D ITf'S 12770 15770 515770 All GUARANTEED-You MUST BE SATISFIED! GAM STORE 303 S. FRONT Call 2-5595
