I—THE MILL CITY ENTERPRISE THURSDAY. MARCH 3. 1955 —INCOME TAX FACTS No. 5----------------------- Tax Eased on Dividends and Retirement Income LYONS Uy Eva Brcaslei Merrill Brassfield is reported to be improving at Santiam Memorial hos­ pital, where he has been for several days for medical treatment. Mr. and Mrs. Earl McCoy of Port­ land spent the weekend at the home of Mr. and Mis. Merrill Brassfield. Mrs. McCoy is a sister of Mr. Brass­ field. Miss Beverly Roberts was the honor guest at a shower held at the home of her parents, Mr. and Mrs. S. T. Roberts Thursday evening, with Mrs. George Huffman and Mrs. Burl Smith as hostesses. After opening of the gifts refreshments were served to the honored guest Beverly Roberts, Mrs. Dewey Flatman, Mrs. A. E. Stahl- taan of Mill City, Mrs. Donald Flat­ man of Molalla, Mrs. Paul Gerath, Mrs. Oscar Naue, Mrs. Chester Roy, Mrs. Samuel Roberts, Mrs. Alice Hu­ ber of Lyons, Mrs. Haraln Bones of Silverton, Mrs. Robert Draper of Me­ hama, Mrs. J. M. Bones, Mrs. V. N. Bones, Mrs. H. K. Bones and sons of Turner. Those sending gifts that were unable to attend were Mrs. Clarence Bellington and Darlene, Mrs. Floyd Bassett, Mrs. Art Baltzer, Mrs. Elva Kuiken, Mrs. Charles Cruson, Miss Norman Miller, Mrs. James Hollings­ head, Mrs. Ray Mohler and Shirley, Mrs. Clyde Bressler, Mrs. Alex Bod­ eker, Mrs. Wilson Stevens, all of Lyons, Mrs. George Hubbaid of Oak­ ridge, Mrs. Ingle Johnson and Mrs. Leland Kaplinger of Mill City, Sam P. Roberts of Paradise, Calif., is visiting at the home of his son, Samuel Roberts and family. Cecil Bassett, University of Oregon student, spent the weekend at the home of his parents, Mr. and Mrs. Floyd Bassett. Mr. and Mrs. Ivan Smith, lvalyn and Dennis spent the weekend in Cornelius, where they were guests of his brother, Kenneth Smith and fam­ ily. Mr. and Mrs. Alex Bodeker were Sunday dinner guests at the home of Mr. and Mrs. Gust Johnson in Salem. They also visited at the home of their daughters, the Norman Johnson and Earl Hampton homes. Mrs. Wilson Stevens will complete teaching the school year for Mrs. No­ lan Rasnick at Mehama. Mrs. Rasnick will go to Washington, D.C. to join her husband who has been appointed assistant dooi keeper for Senator Richard L. Neuberger. The annual Father and Son banquet sponsored by the Womens Society of Christian Service was held in the all- purpose room at Mari-Linn school Tuesday evening with a good attend- tendance. James Wright, principal, LICENSED GARBAGE SERVICE $1.50 Per Month and Up Abe servicing Gates, Lyons, Idsnsha and Detroit Phone 3952 MILL CITY DISPOSAL SERVICE LEONARD HERMAN fThis it one of a series of articles on enroute lax ehanges. The artielrs are bated on information proud, d by the Anieruan Institute of Account, ants and the Oregon Society of Certified Public Accountants.) A retired couple may now receive an Income of $5.730 without paying any federal income tax whatsoever, if at least $1.475 of their Income is from dividends This is the »ay it works under the ne* tax law (omitting cents): Subtract dividends they are al-1 towed to exclude ($50 each): Retirement Income Credit The computation of retirement $100 Reduce the remaining $5.430 by income credit is rather compli­ cated You are eligible if: the siandatd deduction of 10% I You earned more than $600 a $543 year in any ten calendar years, Subtract their exemptions ($1 200 or your deceased busband or each, if they are both over 45): wife did $2.400 You are at least 45 or have re­ tired under a public retirement Taxable income $2.447. system other than for the U. S. Tax at 20% (income splitting of armed forces joint return keeps them in low­ Your credit is 20% of your tax­ est bracket): $533 able income from . ny public retire- Subtract dividend credit, limit be­ ment system I other tban armed ing 2% of $2.447: $53. forces pensions)—and. If you are 45 or older 20% of your other pen­ Remaining tax: $480. sions, annuities, interest. dividends Subtract retirement income credit and rent. at 20% of taxable income up This credit is limited to 20% of to $1.200 Assuming both bus $1.200. reduced by any social aecur- band and wife are eligible total ity benefits, railroad retirement credit would be 20% of $2,400 benefits, and tfor anyone under 7$) ($480). any earned income, such as wages, Result no tax. salaries and professional fees, above $900. Dividend Exclusion and Credit The credit cannot be »ny more There are good many “its” and than the amount of your tax other- “buts” involved in the above illus­ wise payable; that is. It cannot in tration. Consider first the matter of itself produce a refund. dividends. All taxpayers (regardless of age Taxing of Annuities There is also a new method of or retired status) are entitled un­ der the new law to exclude from taxing annuities which may result their incomes the first $50 of divi­ in a higher tax for some, lower for dends received in 1954. Husband others It is based on tables of life and wife can each exclude up to expectancy furnished by the In­ $50 if they both own stock. A credit ternal Revenue Service Each year. of 4% of dividends beyond this If you qualify for this method, you amount received after July 31, 1954. may receive tax-free an amount may be subtracted from the tax equal to the cost of the annuity divided by the number of years of that would otherwise be due. life expectancy at the time you be­ The 4% dividend credit is lim­ ited to 2% of your taxable income gan receiving payments from ttle annuity. for the calendar year 1954 (and fis­ cal years ending before 1955), but Additional Information will go to 4% of taxable income tor Be sure to read the official in- future years. sti uctlons You can also get h