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
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