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Pmg» Twelve THE McBDIKY PLAINDEALEH i T&ursday, February 15, 1962 Our Servicemen M. I. BALDINGER'S FEDERAL TAX HORIZONS 1--YOUR 1961 INCOME TAX Pvt. Joan E. Phillips, whose parents, Mr. and Mrs. Marvin C. Phillips, live at 4411 N. Riverdale drive, Pistakee terraee, McHenry, completed the eight - week communications center operation course at the Army signal training center, Fort Gordon, Ga., Jan. 26. Pvt. Phillips was trained to receive, process and relay messages by various means of communication. She entered the Women's Army corps last September and completed basic training at Fort McClellan, Ala. The 18-year-old private Is a 1.961 graduate of McHenry Community high sch$?ol- Army PFC George R. Kropf, 23. whose wife. Carol, lives at Berwyn. participated in Exercise Red Hills, a two-week Army-Air Force winter t r a i n i n g e x e r c i s e a t F o r t Campbell, Ky. The exercise, under the direction of the new U. S. Strike Command (USSTRICOM), was designed to develop joint operational tactics to insure that Strike Command's Army and Air Force units can deal decisively with all types of warfare contingencies. A wireman in Battery A of the 11th artillery at Fort Campbell. Kropf entered the Army in April. 1960, and completed basic combat training at Fort Leonard Wood, Mo. He attended Farright high school, Chicago. His parents, Mr. and Mrs. George M. Kropf, live at 115 Indian Ridge. McHenry. T/Sgt. Walter H. Goecks, 8 S. Spring street, Elgin, announced that Gerald A. Foute, 20. of 504 W. North Lake Road, McHenry, enlisted in the United States Air Force in January and was assigned to Lackland Air Force base, Texas, for his basic i training. Airman Foute is a graduate of McHenry high school. Robert Thompson, son of Mr. and Mrs. George Thompson of Reeseville, Wis., formerly of McHenry, completed his recruit training at Great Lakes Naval training center recently. SA Thompson's company was named coior company at graduation for its outstanding over-all average in drill efficiency, barracks, cleanli n e s s, athletic abilities and personal care. Thompson held the position of recruit first class petty officer and was platoon leader and captain of the company track team. Having completed his recruit training, the recruit received the rating of seaman apprentice. His duty station now is Norfolk, Va., where he is assigned to the USS O rion, a sub tender, for sea duty, and is presently in Bermuda. The O'rion is tending both conventional and nuclear powered submarines. John A. Yegge, airman apprentice, USN, son of Mr. and Mrs. Norbert A. Yegge of McHenry, is serving with the Naval air technical training unit, Jacksonville, Fla., which underwent an annual administrative and material inspection recently, conducted by Rear Admiral Joseph C. Clifton and his staff. The outstandinng showing of the training unit, the Navy's second largest air technical training unit, makes it eligible to compete for the "Admiral's Plaque". The unit was judged second in last year's competition. In his personal letter to individual taxpayers reprduced on the Federal income tax forms for 1961, Commissioner Mortimer Caplin quotes Mr. Justice Holmes as saying "Taxes are what we pay for civilized society * s " and that the Justice liked to pay taxes without mentioning if his enthusiasm included the filling out of tax forms. The late revered Judge Learned Hand wrote: "Over and over again courts have said that there is i^othing sinister in so arranging one's affairs as to keep taxes as low as possible. Everybody does so, rich and poor; and all do right, | for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant." ' ^ Recently, Judge Whitaker of the U. S. Court of Claimy wrote: "Too often revenue agents do not credit a taxpayer with a purpose to deal justly with the government. No one likes to pay taxes and no one means to pay more than he justly owes, but we are among those who believe that the great majority of our citizens pay what they think they are due to pay. We think the American people as a whole are honest and decent. We indulge the presumption that they are. * * *" Exclusions There are certain items which are not subject to income tax. We call them exclusions. These are not to be confused with deductions allowed by the law or credits. 1. Interest on obligations of a state, territory or any political subdivision. 2. Insurance amounts received by reason of , the death of an insured. This'"also covers any policy transferred to an insured, a partner of the insured. a partnership including the insured, a partner of the insured, a corporation of which the insured was a shareholder of officer. (On the other hand, where insurance was transferred to someone else for a valuable consideration, then only the actual value of the consideration and the amount of premiums and other sums subsequently paid by the transferee arc exempt.) ( a t Of c o u r s e , i f t h e i n s u r ance company is holding the proceeds and paying interest to the beneficiary then the interest is taxable. (b) If the proceeds are paid in installments that include interest earned after the insured's death, the interest phase is taxable to the beneficiary but a widow or widower beneficiary is entitled to exclude up to SI,000 of such interest each year. Here is how it works. The husband-beneficiary of a $50,000 (face) policy payable in 10 annual installments of $6,200 each would receive in effect $1,200 interest. He would only report $200 as interest income. However, if the payments were to be for the husband's life, instead of 10 equal payments, we would first divide $50,000 by the husband's present life expectancy. If it is 20 years, then $2,500 plus $1,000, the annual interest exclusion, or $3,500 would be the total exclusion. 3. Workmen's compensation received for personal injuries or sickness are excluded from gross income. 4. Unemployed ins u r a n c e payments received from a state are not taxable. The same rule applies to unemployment compensation payments to federal employees by state or federal agencies and unemployment insurance benefits received by railroad workers covered by the Railroad Unemployment Insurance Act. 5. Accident and health insurance proceeds received under a policy paid for by you is generally not taxable. It is a different story if you are reimbursed for certain business overhead expenses incurred during prolonged periods of disability or sickness; such are taxable. ( a ) B e n e f i t s r e c e i v e d d i r e c t ly or indirectly by you under an accident or health plan resulting from your employer's contributions for expenses incurred for your medical care or that of your spouse and dependents are n6t taxable unless expect to claim, a medical expense deduction. ( b ) P a y m e n t s f o r p e r m a nent loss of a limb, member or function of the body, or permanent disfigurement of an employee, his spouse or a dependent. if the payments are based on the nature of the injury and has no connection to the time the employee is absent from the job. are exempt. ( c ) I f t h e p l a n i s a c o n t r i b utory plan by both employer and employee, then th6 benefits received must be allocated between the two. You should then make inquiry at the Personnel Office for proper handling. 6. Damages for personal injuries, sickness, alienation of affection, breach of promise to marry, slander, libel, award for loss of life of your husband, compromise of suit for annulment of marriage are not taxable. (Exemplary or punitive damages received in a libel suit for injury to personal reputation or by , a corporation under the' Clayton Act and damages recovered for loss of profits are taxable.) 7. Family allowances paid by the government to dependents of those in the armed forces are not taxable, but the part deducted from the service pay is taxed to the one in the service. 8. Gifts, bequests and devises are not subject to income tax but the earnings or income on such are taxable. 9. There are other exemptions which have particular limited scope which are not covered in this article. Lafconoor SET DEADLINE FOR VEHICLE STICKERS AND DOG LICENSES David Heokmann - EV S-0532 THIRTY SCHOOLS PARTICIPATE IN CD INVENTORY Thirty schools in eleven Illinois public school districts have been asked by George T. Wilkins, superintendent of public instruction, to participate in a pre-test inventory of public school facilities and personnel for civil defense purposes. In case oi a national emergency or nuclear attack, public school facilities would be considered important by the civil defense organization as possible mass feeding and evacuation centers, emergency hospitals and as sites for public fallout shelters. Supt. Wilkins today asked the following school districts to participate in the pre-test inventory: Springfield, Alton, Mt. Vernon elementary, Rockford, Rock Island, Chicago, Joppa elementary, Elizabeth, Kansas, Hennepin and a rural district in Whiteside county. Thomas R. Dowe, son of Mr. and Mrs. Charles J. Dowe of 412 N. Front street, McHenry, completed recruit training this month at the naval training center, Great Lakes. Graduation ceremonies marking the end of the training included a full-dress parade and review before military officials and j civilian dignitaries. PRODUCTION RECORD . The career production of a Illinois recently topped 150,000 lbs. of milk in the official testing programs of the Holstein- Friesian Association of America. Lilac Hill Arlene Fobes Posch 3239051 <VG) owned by Henry Wegener ol Round Lake, now has a lifetime record of 157,239 lbs. of milk and 6,620 lbs of butterfat. Her production to date averages out at nearly 41 lbs. of milk for every day since slue reached 2 years of age, including days dry. How Christian Science Heals SUNDAY, FEB. 18 "CAN RELIGION SOLVE BUSINESS PROBLEMS" Some helpful answers by Colorado retailers. Radio: WATT (820 kc) Sun. 9.00 a.m. WCLM-FM (101.9 mc) 10:15 WJJD (1160 ke) 8:00 a.m. last Sunday each month. Designed to Fit Your Needs For BUILDIHG BUYING REMODELING Your Loan Can Be Made On A Long Term Basis Repayable Monthly Like Rent PROMPT SERVICE Low Closing Costs See Us For Many Features Of Our Home Loans That You Are Sure To Like. Fe Wnrni/?ir LOAff Blityj ASS©C2Jffl« MARENGO, ILLINOIS Phone JOrdan 8-7258 A Mutual Company Serving Northern Illinois Slnoo 1925 Total assets over $14,000,000,09 104 N. State St. LOW COST At last Thursday's meeting, plans were discussed for further work to be done on the roads in the spring. Also {dans are progressing for sand to be spread on both beaches by the beach committee. The deadline is today on vehicle stickers and dog tags. Applications for a dog tag must be accompanied by a rabies certificate. This is a state law. Starting Feb. 16, owners of cars without vehicle stickers and dogs without a license will be ticketed by the police department. The village clerk, Pat Morrison, holds office hours on Monday, Wednesday, and FridajC from 6:30 p.m. to 8:30 p.m.; Saturday, 1 p.m. to 3 p.m. Residents of Nunda Precinct 6 and McHenry Precinct 9, who wish to register to vote* please call Pat Morrison, at EVergreen 5-6396. John Hosie, did a commendable job clearing parts erf the lake for the children to enjoy their ice skating. The village meetings are held on the second Thursday of every month. The next meeting will be held on March 8, at 8 p.m. After the meetings an open forum is held, which is very interesting. Good ideas and suggestions are^ made at the forum, which are for the betterment of the village. Harrison District Announces Lowest Valuation Per Pupil Pupils of Harrison school are "Getting the most education for the tax dollar spent", Supt. Merl F. Thomas reported to the school board this week. His comment was based on reports of assessed valuation for pupil in twenty-eight McHenry county schools. Harrison district, with an assessed valuation of $8,327,370, has a per pupil in twenty-eight Mclowest in the county. Marengo high school at $35,585,440 valuation tops the list at $89,000 per pupil valuation. Woodstock and Richmond high schools at $85,000 each and McHenry high at $73,000 are next. Noting programs and facilities of Harrison, including a 4,000-volume library, unique a m o n g e l e m e n t a r y s c h o o l s , Thomas said "Harrison compares most favorably with any elementary school" in terms of money available for education. National figures show, that 25 per cent of all elementary schools are below Harrison, some having a per pupil valuation as low as $4,000. Thomas also reported that many school districts in the county have used up more than 90 per cent of their bonding power, some as high as 96 per cent. Harrison has used only 52 per cent and McHenry high school 37 per cent. While Harrison's income to expense ratio is "slim" small deficit is possible owing to personal property tax nonpayments), some other schools are borrowing now against tax anticipations to end the current operating year, he added. The board, expressing encouragement of Scouting in Wonder Lake, approved, subject to recommendations frorri Thomas, use of the school by a new Boy Scout troop being firmed. It also rescinded a previous action, and dropped a rental charge in favor of the Cub Scouts who will hold an annual dinner at the school Feb. 18. Custodian charges will be made for the Sunday event. Sam Lamont, cubmaster, also spoke in behalf of the Boy Scout troop, noting that adequate adult supervision will be maintained while the youngsters are on the premises. 1 The board has under advisement the updating of contract requirements covering use of school facilities by outside groups in the area. 7 State inspectors have mada a periodic check of the school's pupil transportation program, including a check on vehicles, drivers, records and reports. Pupil absenteeism is running about 5 per above normal, attributed to a slight increase in usual children's illnesses in the lower grades rather than to fiu which has hit some schools severly elsewhere in the state. Before adjourning to executive' session to discuss teacher contracts, Dr. Raymond Watkins, board president, presented members and guests with a booklet that summarizes twelve key points for evaluating schools. Accident Monday morning, Feb. 5, 4:10 in the wee hours, the Schmit family living on Rand road, Rt. 120, was suddenly awakened by squelling tires and smashing steel. Their son, Joe, opened the door to a dazed ycung man seeking help and the police were called. Herb Brossman and John Bonder came on the run. The young men were going east on Rt. 120, and missed the curve, ran smack into a tree, making a total wreck of their car. Fortunately they walked away from the wreck, one young man had cuts on his leg, but to all intent and purposes both young men were not hurt. Needless to say Ann and Jim Schmit will remember Feb. 5 for a long time to come. Illness on the Road Art Healds was taken ill while on a trip to New Buffalo, and was taken to the hospital for observation. It is thought he will have to undergo an appendectomy. Meanwhile poor Pat is sitting at home biting her nails, waiting for newjs. You have our prayers and best wishes, Pat and Art, that everything will be allright. BENEFICIAL FLUORIDES Nearly six million persons in the state now are drinking water which contains sufficient fluorides to receive dental benefit, Dr. Franklin D. Yoder, director of the Illinois Department of Public Health said last week. During 1961, six more communities added fluorides to the water making a total of 129 communities that have fluoridated water supplies. With the 140 communities that have a sufficient amount of natural fluorides, this brings the total up to almost six million persons receiving dental benefit, Dr. Yoder said. IT PAYS TO ADVERTISE Jewel Pastry Shop Special Thurs., EFrie, Sat., Only! Kaiser Hard Rolls 39° AVAILABLE NOW AT., Jewel fa McHenry 3718 W. Elm St TEA CO. YOUR RADIATOR NEEDS REPAIRING WE'LL FIX IT! At radiator work, we're tops! Anything from a little crack to a blf gash, we'll repair With precision. as low as $4.00 McHINRY AUT® BODY Phone: 3854)444 4704 W. Rt. 120 (Lakeland Park) McHenry, IU. 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Although the term "wonder drugs" is sometimes considered an extravagant copy writer's creation, there is no discounting the fact that life expectency today is a full decade greater than in 1935. Much of this astounding increase is directly attributable to the socalled wonder drugs and to the improved surgical techniques whieh they helped bring into practice. Reliance on new and improved drugs is not the entire answer, however; accurate prescriptions are a must for the well being of the average person. You are assured of the finest prescription service poss i b l e a t M I L L S T R E A M DRUGS, 3720 W. Elm. Phone EV. 5-5067. We give Double && H Green Stamps with prescriptions. on all GARAGES and REMODELING 1st Payment Not Due Until June I With Storage // Col« Wh Your Needs -- You Will Find Them At SPUE! IU5IRE ALKYP S E M I . © I O S S B NAM 61 ^ SPRED i o o *^ e, a ?..q jsj? a. o m s Here's room.beauty you can have -..enjoyfor so many ALEXANDER LUMBER CO. 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