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rt-nneti PAGE 7-PLAINDEALER-FRIDAY, JUNE 23 This column of questions and answers on federal tax matters is provided by the local office of the U.S. Internal J^evenue Service and is published as a public serviW^o taxpayers. The column answers questions most frequently asked by taxpayers. Q) Were the filing require­ ments for 1972 eHtimated tax returns changed by the Reve­ nue Actof 1971? A) Yes. Under this law, you must file a declaration of es­ timated income tax, Form 1040-ES, for 1972 if your es­ timated tax is $100 or more and one of the following situa­ tions applies: Your estimated gross income for 1972 includes more than $500 in income not subject to withholding; or You are single, head of household, surviving spouse or married filing jointly but with only one spouse receiving wages and your estimated gross income exceeds $20,000; or You are married filing jointly with both receiving wages and your estimated gross income exceeds $10,000. Q) Can I have tax withheld on my pension? A) Yes. You may elect to have income tax withheld from the taxable portion of pensions and annuities paid over a period of more than one year by filling out a Form W 4P and submitting it to the payer. The amount to be with­ held must be at least $5 per month and the net annuity payment received may not be less than $10. Forms W-4P are available at IRS offices. Q) What are the rules for deducting amounts I spent to fix up my old house before I sold it to buy a new one? A) Fixing-up expenses may not be deducted from income on an individual income tax return, nor are they deduct­ ible in determining the actual profit on the sale of the old residence. However, they are considered in determining the amount of gain on which tax is postponed under certain conditions on the sale or ex­ change of a residence. Just deduct fixing-up expenses from the amount realized on the sale and compare this figure with the cost of the new resi­ dence to find the amount of gain on which tax is post­ poned. Fixing-up expenses must also meet the following tests. They must: 1) be for work performed during the 90-day period end­ ing on the day the contract to sell was made (the contract to sell must have resulted in a completed sale); 2) be paid within 30 days after the date of the sale; 3) be otherwise nondeduct­ ible in computing taxable in­ come; and 4) not be capital expendi­ tures or improvements. For more on fixing-up ex­ penses, see IRS Publication 523, Tax Information on Sell­ ing Your Home. It's available free by dropping a postcard to your local IRS office. Q) I recently started work­ ing as a waiter. When do I have to report tips to my em­ ployer for withholding pur­ poses? A) You must give your em­ ployer a written report on or before the 10th day after the end of each month in which you received cash tips of $20 or more while working for him. You may use Form 4070, Employees' Tip Income Re­ port, for this purpose. It's available at IRS offices. Q) Do you have a booklet that tells taxpayers what their rights are if they are audited? A) Yes, write your Internal Revenue district office for a free copy of IRS Publication 556, Audit of Returns, Appeal Rights and Claims for Refund. Deaths ERNA MEYER Erna Meyer, 77, of 2716 W. Kashmiri avenue, McHenry. died June 21 in McHenry hospital. Mrs. Meyer was bom July 15, 1895 in Berlin, Germany. She had been a summer resident here since 1934 and lived here permanently for the past five years. Survivors are her husband, Otto G.; two sons, Helmuth and Edward; five grandchildren; one great-grandchild and one sister, Mrs. Katherine Knott of Mexico. Services will be conducted at the Peter M. Justen & Son funeral home Friday morning at 10 'clock. Burial will be in Rosehill cemetery, Chicago. Comments from the Governor (The governor discusses freezing local taxes in the fol­ lowing special column.) By Gov. Richard B. Ogilvie 4. For units which do not levy any tax in 1972, the freeze level will be the last tax they had. Thus, towns which eliminated a town tax, as some have with state nately, the reverse is true in far too many cases. In' communicating with our legis­ lators, I said flatly that the rising property taxes of many communi- Springftetd, III. -- Freeze local revenue-sharing, can meet future l'cs are "intolerable. COLLEGE EXTENDS WEEKEND McHenry County college announces an extended weekend over July 4. The college will not have any classes on either July 3 or 4, day or evening. All college offices will be closed those days. WHO KNOWS? 1. How is the new Maverick air-to-ground missile guided? 2. When was New York City incorporated? 3. When was the battle of Bunker Hill fought? 4. In what year did the C 5 Galaxy make its success­ ful test flight? 5. What is measured by the ream? 6. Who invented the first successful fountain pen? 7. How many were killed in World tyar I? 8. Name the capital of New Hampshire. 9. Translate "Labor Omnia Vi ncit." Answers to Who Kaows taxes at their 1972 levels through needs on a historic basis. 1974. That's the objective of a bill now moving in the Illinois General As­ sembly with strong bi-partisan sup­ port. I have enthusiastically given my support to the bill. Substantial other aid to hard- pressed taxpayers is at or near passage stage. The measures include: --Re-adoption of the exclusion of one household of furniture and one automobile from personal I also suggested that they work closely with Attorney General Wil­ liam Scott to ensure the constitu­ tionality and enforceability of the legislation. W h i l e t h e l e g i s l a t i o n i s unique, I believe forceful measures are vital to end the spiraling increases in taxes. Major exceptions to the general The major provision of the bill property taxation would bar local governments from --Substantial relief to home ru|e of the bill should be~noted, collecting more taxes in total than owners and renters 65 or older anc| there will be further oppor- they will this year. when property taxes exceed 7 per tunities for necessary exceptions. Thus, changes in individual as- cent °f their income. The maxi- The present exceptions are: sessments might produce changes mum benefit--,a refund--would be |. Where a minimum tax rate up or down for individual home- $300. is prescribed to qualify a local gov- owners or businessmen -- but the --Exemption of farm personal ernment unit--such as schools-- total would be frozen at the 1972 properly from personal property for federal or state aid, the total level. taxation, and replacement of the levy can be increased to accom- There are a few exceptions, Ic*51 revenues for local taxing dis- modate this requirement. which I will explain later. tricts. Since 1969, we have attempted Meanwhile, the exemption of the to reform the tax structure of Illi- first $1,500 of home valuation for nois, and a major objective has the aged has been upheld by the been to ease the load of taxes on Illinois Supreme Court. property and personal property-- It will be a happy day for me all of which support units of local if the attorney general and I win government. a victory for the people in the To this end, we insisted that United States Supreme Court, the state income tax legislation 2 . U n i t s o f g o v e r n m e n t o r ooooooooooooooor«oooLnjoooriHoooo»oooooq The freeze legislation, if adopted this session, will also be a landmark victory. Meanwhile, we're moving to get give direct, no-strings aid to our local units of government. The income tax, painful though it is, is intrinsically fairer than forms of the property tax because the United States Supreme Court you pay less in a bad year while to knock out the personal property the property tax just seems to go tax on individuals. FINALLY! up and up. Massive state aid has gone to The latter provision is a key our localities_$536 million in rev- one, since it preserves the vital en"e•sharing and other programs, principle of home rule, and will an? billion for local schools Good for Size News 10 Only. I not block the desire of local voters It should have held down local to improve schools or other serv- Pr°Perty ,ax increases, and it did • so in many communities. Unfortu- Light up the night A complete system you can install in minutes for beautification and security. Malibu lights let you enjoy the pleasure of extra hours of outdoor living in garden or patio. Makes steps and walks safer, too. Easy to set-up, no expensive installation or per­ mits required. 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Raw-boned 7. Poker stake 8. Dundee native » 9. Pro­ noun 13. flower 15. weaving device 17. Netherlands commune 18. A quick stroke 19. Niger­ ian delta tribes­ man 20 . Marino 21. Never (It.) 22. "Where thou?" 23. Sault Marie 24. Son of Odin 26. Ship's bow 29. Swell 30. Trim 31. Branding or shooting 32. Shade of green 33. Sound a knell HBnH nHEBR BEDSI maan nnEH snnnrjT cieinnTPiHSirr wnr pinnnpin mrcnEi nnnnnnrcnrann Jircrnpip BBH nREnnnororein •Ennnw ^iraun FlRdinfii TinnHK mnmu 34. Operatic highlight 35. Territory 36. Body joint 37. Small rug REMINDER . . . The absurd giant tortoise, the Gnadeloape parrot, the flightless night heron, and numerous other extinct species are represented in this "animal graveyard," erected once each year on Baird Court at the Bronx (N.Y.) Zoo for Earth Day observances. ISill SUPER MODIFIED AND SPORTSMAN STOCK CARS "I'm sharpening a pencil," answered the bricklayer. "Careful," warned the foreman, "don't let anybody see you. That's a carpenter's job." 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RT. 12 - FOX LAKE, ILL. OPEN SUNDAY