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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Feb. 6, 1961)
o Income Tax Payable on Money Earned by interest, Dividends Above S50 Kditnr's note: Thli Is thi last nf five dispatches on how to prepare your income lax tn the most eco nomical mailer. Todav's dispatch covers payments and allowable de ductions on interest, dividends, sick pay and taxes. By EDWARD COWAN Washington - ll'PIl - You must pay income taxes not only on the money you earn but also on the money your money earns. That means that all the in terest you received last year, and dividends above $50, are taxable. Interest is taxable even if you only had it credited to a thrift account and did not take it in cash. Interest on a loan is taxable even if the principle itself was not paid back to you. (There are, how ever, provisions for taking bad debt deductions.) Dividends, although taxa ble, come in for special treat ment in two ways: -The first $50 you received in 1960 is not taxable. -Generally you may lake a credit against your tax of 4 per cent of dividends above $50. Suppose, for example, a tax payer received S30 in divi-1 savings banks and similar in- dends in 1960. He reports this stitutions. These "dividends" on his return but does not! are actually taxable interest. include it in his taxable in come because it is less than $50. Another taxpayer received Dividends on life insurance policies are not considered in come for tax purposes. U. S. Savings Bonds - Hold- $85 in dividends on his stock, ers of these bonds need not He reports that but pays tax report the interest they re only on $35. He may also take ceive each year. They may 4 per cent of the $35 ($1.40) as a credit against his tax. One Exclusion In a joint return, a husband and wife may not combine their $50 exclusions. Each may take one exclusion sep arately. Suppose he received $70 of dividends and she re ceived $20 and takes a tax credit of 80 cents (4 per cent of $20). Her $20 of dividends also is reported on the re turn. It is not taxable. Her unused allowance of $30 is not applicable to the hus band's dividends. These rules apply to divi dends paid on the common and preferred stocks of fully taxable U. S. corporations. They do hot apply to the so called "dividends" of savings and loan associations, mutual defer reporting this income until the bonds are cashed. On Series E Savings Bonds the interest is the difference between the purchase price and the bond's present cash value. Must Stick to It A taxpayer also may elect to report the interest each year instead of waiting until he cashes his bonds. If he chooses yearly reporting he must slick to it, even for bonds he acquires in the fu ture. To change to deferred reporting he must first get permission from the revenue service. Sick Pay - You may deduct up to $100 a week of sick pay under certain conditions. If you were sick at home for more than seven consecu tive days, the pay you re ceived starting with the eighth day may be excluded from; your income. You may deduct ! one-fifth of your weekly pay' tout not more than $20) fori each day missed if you are on j a five-day week: one-sixth i (but not more than Slti.(iT) if your work a six-day week, j You may deduct sick pay starting with the first day if! you are away froi the job because of injury, no matter! where suffered, or if your ill ness caused you to be a hos-l pital patient for at least one day.' Again, you may not de duct more than $100 a week. Must Attach Form If you claim sick pay de ductions. beQ sure to attach Form 2440 to your return to support the claim. This form can be obtained at your near est Internal Revenue service office. Retirement Income - There are several special rules gov erning taxation of retirement income. If you received retire ment income in 19ti0 and have any doubt about how to treat it on your tax return, consult your tax adviser or the Inter nal Revenue service. Retirement income which is not taxable and need not be reported includes Social Se curity payments, Railroad Re tirement act pensions, veter ans pensions, benefits to fam ilies of veterans, or payments for injury or sickness to mili tary personnel disabled in ac tive service. Whether other retirement income is taxable, and how m u c h, depends on several things, especially whether you or your employer or both of you made contributions to the pension fund and whether tax es were paid. There also are provisions for special retirement income credits. Persons 65 or older should remember that by virtue of their age they are entitled to two $600 exemptions, or a to tal of $1,200. (See dispatch Ilitirement income does not in of this series.) elude money you are now Regardless of your age, re-1 earning by work. EEB - Fl Slabs and Rough Blox Green Select Qualify Quick Delivery Buy Now S&H Green Stamps, Too! THEY WILL NOT BE AVAILABLE AFTER MARCH MEDFORD FDEL CO. Telephone 2-2111 Court & McAndrews Medford Tribune SECTION B MEDFORD, OREGON, MONDAY, FEBRUARY 6. 1961 PAGES 1 to 8 V j' UMt i s, tit "WW A HAPPY FAMILY - The Shah of Iran and levi, right, are a happy family. The Shah his commoner wife, Farah Dibah, shown at had waited 20 years for this heir to the left, and their son, Crown Prince Reza Pah- Peacock throne. (UP1 Telcphoto) Shah of Iran Radiantly Happy As Son's 'Future Plans Made Tehran IUP1I The proud handsome man and his beau tiful young wife stand hand-in-hand, peering down at the sleeping infant. They look at each other and smile, then steal silently from the room. The Shah of Iran has waited 20 years for this. He lives it every second of his waking hours. The 2,500-year-old peacock throne at last has an heir. With the birth Oct. 31 of Crown Prince Reza Pahlcvi of Iran, the gloom that has hung heavily on the handsome ruler of this ancient kingdom has vanished. The Shah, his commoner wife, former student Farah Dibah, and their baby son are a happy family. The palace radiates with love. As one courtier said: "There's a con- Volunteer Observers Are Listed in Bureau's Book A Jackson family and three southern Oregon residents are among those cooperative wea ther observers who receive special mention in a booklet dedicated recently to these volunteers by the U.S. Weath er Bureau. The observers record the high and low temperatures each day, the 2 4 - h o u r 1 y amounts of rain and snow and several other weather ele ments for the community in which they live. This 365 day I a year public service is car ried on without compensation in any form, it was pointed out. The booklet is divided into two chapters. The first con tains a brief resume of the cooperative observer program. The second deals with the ac complishments of several of the outstanding observers in each slate. In Oregon there are about 300 of these co operative observers. Special Mention Two families and 11 indi viduals have received special mention in the booklet. Among these are the Britt family it Jacksonville, H. B. Howell with 35 years of com bined service at Grants Pass and the Astor experiment sta tion; J. Ludo Grieve, Prospect, and Mrs. Christine B. Harr, Copper. Grieve retired in 1960 after serving more than 35 years at Prospect. He became the Prospect observer in Novem- if. ber, 1925. From that time for ward the weather records have been outstanding in their completeness, legibility and accuracy, the booklet stated. The California Oregon Power company Prospect in stallation, of which Grieve was superintendent, included four separate plants. Rainfall Reports Besides the monthly clima tological reports forwarded to the Weather Records Process ing center each month, he pro vides the Medford weather bureau river district office with reports whenever heavy rainfall occurs that would be a threat to life or property through flooding along the Rogue river and tributaries. Grieve has also kept care ful climatological summaries of the Prospect weather for the operating use of his company. Salem Resident Is Traffic Victim Salem - OIPIl - John W. Un ruh, 74, Salem, was killed in stantly near here Friday after apparently stepping in front of a moving car. State police said the accident occurred on Liberty road near the south city limits. Ernest Kent Lindon, 19, Sa lem, driver of the car, was not cited. It was Oregon's 37th traffic fatality of the year and third for the month of February. slant sparkle in the eyes of both the shah and the queen." Now that the initiul excite ment' has tempered down, people are looking ahead. Their natural question is: What do the Shah and Farah plan for the fulure ruler of Iran? Recently the queen said her child would be trained and educated mainly in his home. This, she indicated, would en able him to grow up among his own people and know their needs. He would go abroad only t for his university education, I possibly Switzerland, where the Shah himself studied. But already the palace is going ahead with its prcpara-1 tions. A team of top local edu-; calors is being assembled. It 1 is said little Reza will have I Iranian tutors as well as Swiss and British. The shah, sportsminded and j physically f i t himself, wants j his son to grow up to be a strong and healthy young man, interested in sports. So he has picked his own team of physical, culturists for the job. Meanwhile, the baby prince lives his days in a palace within a palace not 50 yards from his royal parents' private suite. Special Clothes Over him watches attractive French nurse Jeanne Guyon. Late evenings and early mornings, Miss Guyon wraps the baby in special swaddling clothes and carries him to the queen for his three-hourly feedings. There's a special telephone link between the nursery and Farah's room. If the baby cries too insistently, Farah is at his side in a matter of minutes. The warmth of the family group is seen every day. When the palace clocks chime one p.m., the proud father and his wife go hand-in-hand to the nursery. "How's our son?" the Shah invariably asks. Pride glints in the dark eyes of the Shah these days. NOT Bargain-Counter Coverage . AUTOMOBILE INSURANCE with BIG safe driver SAVINGS from THE TRAVELERS, u TM7T7,7rrrlr ; . tiic iujj-ipcmjr Liictt xii v mi iXiL; auwj nioui cmuo. J Available tunc to Oregon motorists from your local independent Travelers Agent: . Don Stathos, jnsuror THE MAll-1005 E. Main ,rinMA.L -. vPhone Mm a mm f 1 s ,f Home of FAMOUS BRANDS! 6th and Grape Open Every Night Until 9 P.M. 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