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.lndW'Bu.. W The amazing, , incredible, indestructible Bond. nxaV.o y««' J - - Votf* iJDecc^cr T;e05U*y & lolr.t rctu »Vour occ PAGE 13 - PLAINDEALER - FRIDAY, JANUARY 17,1975 CROSSWORD PUZZLE TODAY'S ANSWER This column of questions and answers on federal tax matters is provided by the local office of the U. S. Internal Revenue Service and is published as a public service to taxpayers. The column answers questions most frequently asked by taxpayers. Nothing can hurt a U.S. Savings Bond. Suppose yours are lost. Or stolen. Or burned. No problem. Just let us know they're missing. And we'll replace them. So you see, if Bonds can't make you feel secure, probably nothing will. Now E Bonds pay 6% interest when held to maturity of 5 years (4';% the first year) Bonds are replaced ifiost, stolen or destroyed When needed, they can be cashed at your bank Interest is not subject to state or local income taxes, and federal tax may be deferred until redemption. Thke 4 . stock . mAmenca* Join the Payroll Savings Plan. ^^1 A public service of this publication ski and The Advertising Council. College Plans For Consumer lucatlon Class Do you understand what your life insurance policy says, why you bought the-Type of in­ surance you did, and how you (Spuld get the best use out of what you have? If you are in­ terested in( finding out the answer of these and any other questions about life insurance, attend the consumer education course on lite insurance being offered by f McHenry county college, starting Jan. 27 for ten weeks. This\ new course of­ fering will be field at Woodstock high school Mpnday evenings from 7 to 9 p. "Life insurance is probably one of the largest investments the average family makes in our society," said Charles Peraino, the instructor for the course, "but most people buy it haphazardly. What is -worse, many avoid insurance as an investment because they don't understand the workings and terminology of the industry." Charles Peraino brings many years as an instructor and several years of experience in the industry to the course. Topics that will be covered will include: how to read and un­ derstand your policy; how much coverage is enough; how to pick an insurance plan to meet current and future needs; how to use insurance ef­ fectively; and when to buy insurance. - Q. How is minimum income tax computed? A. Minimum income tax ap­ plies to tax preference items, such as capital gains or accel­ erated depreciation on real property, if the total value of these items exceeds $30,000 ($15,000 for married people filing separate returns). To figure the tax, total all the items and reduce the amount by the $30,000 (or $15,000) exemption. From this balance subtract the excess of your regular income tax over any credits for foreign tax,- retire­ ment income, investment, job development and political con­ tributions. Finally, be sure to subtract any tax carryover. The minimum tax on the re­ mainder is a flat 10 percent. Q. What does an IRS dis­ trict office do? A. The district office admin­ isters the collection, audit, in­ telligence, taxpayer service and administrative programs (such as training) in the IRS district. Within these pro­ grams, the district office deter­ mines and assesses tax liability, helps and educates the taxpayer in his rights and responsibilities, schedules and certifies refunds, and investi­ gates certain criminal and civil violations of Internal Revenue tax laws. Q. I'm planning to start a C.O.D. mail order business for auto parts and accessories. When I begin shipping, which merchandise should I record under sales instead of under inventory in my books? A. If you sell merchandise by mail and intend that Pay­ ment and delivery be concur­ rent, title passes when payment is made. Merchandise shipped C.O.D. is excluded from sales and included in your closing inventory until paid for by the buyer.i v Q. I've just hired a maid for the first time. Is it man­ datory that I withhold income taxes from my new employee'* salary? A. No, but the Tax Reform Act of 1969 permits an em­ ployer to withhold income tax from remuneration paid to a household employee if both parties voluntarily agree. You are obligated to pay other em­ ployment taxes, however. For further information on this • building Permits The following building permits were issued by the city of McHenry during December: Bernice Murphy, 4914 Shore drive, sewer permit. George M. Whiting, 816 N. Center, siding. Torres & Place Rentals, 4301W. Route 120, advertising sign. Donald Warke, 421 Kensington, single family dwelling. Millstream Builders, Sorensont road, water and sewer permit. Joseph B. Stanek, 1316 Millstream, water permit. Ed Yenny, 1719 Lakewood, single family dwelling. James Mahoney, 1311 Richmond road, siding. Town Club, Riverside drive, advertising sign. Emil W. Hinspater, 3319 Venice, single family dwelling. Richard Biestek, 1719 Flower, single family dwelling and sewer permit. Walter Frt tt, 3612 Main, siding. Robert Barhyte, 4804 Prairie, sewer permit. Robert Kramer, 4720 W. Route 120, sewer permit. Goodwill Truck To Visit City Next Friday The Goodwill truck will be in McHenry Friday, Jan. 24, to collect repairable clothing, shoes and housewares for the handicapped workers, ac­ cording to local representative, Mrs. Nick (Agnes) Adams. For pickup arrangements, bags, club programs and information about Abilities Center of Goodwill call Mrs. Adams. The entire program of Goodwill is planned to help the handicapped person measure up to his physical, mental and social potentials, as well as to the reality of his disability. Clothing, shoes, toys, housewares and small ap­ pliances are used in the Goodwill sheltered workshop to provide employment, training and rehabilitation. Primarily. ^iiiiiiiiiiiiiiiiiiiiiiiiirniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiinii| FOR WOMEN | ...SHAGS | ...NATURALS | ...LAYER CUTS | You CAN Tell | The Difference 1 E STYLING FOR MEN By Appointment = = 3317 W. Elm St., McHenry 815-385-7771 E Tlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllr the agency is a rehabilitation agency and over one-third of the clients move into industry and private employment an­ nually. v Because of the limitations of the trainees some items can not be accepted to advantage. A guided tour through the workshop or a pictorial presentation will clarify this matter. Providing McHenry Connty residents with over •3,054,000 of permanent whole Life Insurance in 1974 I will do everything I can to merit your continued confidence. Thank You PATRICK (P.J.) LETIZIA Your Country Companies, Agent CENTRAL LIFE ASSURANCE COMPANY Loren Miller RICHMOND, ILL. PH. 678-6691 $13,200 (1974) of my wages this year will be subject to Social Security tax. How can I re­ claim the excess tax paid? subject, consult IRS Publica­ tion 15, Circular E, "Employ­ er's Tax Guide." It's available free from many IRS offices. Q. I am a music teacher in the school system, but I'm go­ ing to take a new job as music director in my church. The church will give me a rental allowance in addition to my sal­ ary. How will this affect my taxes? A. The rental allowance will be taxable income to you. Your church may commission you as a "minister of the gospel of music," but unless it authorizes you to perform all the eccle­ siastical duties of an ordained minister, you are not a member of the clergy. Therefore, you won't be eligible to exclude the rental allowance from your taxable income--a tax benefit available only to members of the clergy. Q. I just inherited several pieces of gold jewelry from a relative. I may sell them and invest the money. What taxes may be involved as a conse­ quence of this inheritance? A. Bequests and inheritances you receive are not income to you for Federal tax purposes. But if property you receive in this manner later produces taxable income, such as inter­ est, dividends or rentals, you'll have to pay tax on the income. For example, if you wait and sell the jewelry at a later time for more than its fair market value at the time of the pre­ vious owner's death, then you'll have to pay tax on the gain. Q. I'm recovering from a broken hip and I've employed someone to do house cleaning and cook meals until I'm back on my feet. Can I deduct pay­ ments for this service as a medical expense? A. No. Payments for domestic help aren't tax deductible, even if your doctor has recom­ mended your obtaining help because of your physical in­ ability to perform household duties. Q. As a result of some debts I haven't paid, my wages have been attached. Since I'm not getting wages until these debts are paid, do I have to pay in­ come tax on the money used for the debts? A. Yes. If your employer uses your wages to pay your debts, or if your wages are attached or garnisheed, the full amount is constructively received by you and must be included in your income for the year in which you would otherwise have actually received it. Q. Because I work for two different employers, more than It's tougher than ever without you Today's rising prices could make it tough on your family if they had to get along without you. The amount of l ife insurance that was fine for your family a few years ago may not leave them enough to live on in today's high-priced economy. That's why Country Life recommends that you update your life in­ surance program. Get together with your Country Life agent soon and review your life in­ surance coverage. Country Life--one of the Country Companies. We're a little different than most insurance people. A. You are entitled to claim the excess withheld as a credit against your income tax. Com­ pute this credit by adding the Social Security tax (FlCA) withheld by all your employers this year, and the "uncollected employee tax on tips" as shown on all your Forms W-2. From this total, subtract $772.20 (1974), the maximum Social Security tax that may be with­ held from your pay. The bal­ ance is your credit which you may claim on line 62 of Form 1040. Q. My father paid the $900 we owed on our car as an an­ niversary present to my hus­ band and me. Do we have to pay income tax on this money? A. No. Although a debt paid by another person is generally income to a debtor, it is not in­ come if the payment is intend­ ed as a gift. It is the intent of the one who pays another person's debt that determines whether the nayment is a gift. Q. My employer has given me an expense-paid vacation to Mexico next January as an award for my reaching the mil- lion-dollar sales mark. How will this affect my income taxes? A. Rewards and bonuses in­ cluding vacation trips paid to you for outstanding work are income. If such an award is payable at some future time at the option of your employer, it is not taxable until you re­ ceive it or your employer makes it available to you. Q. Some of my co-workers and I are planning to start an investment club. We don't know whether to operate our club as a partnership or a corporation. How can we find out? A. Most investment clubs op­ erate as partnerships and are treated as such for Federal tax purposes. Others operate as corporations, trusts, or as­ sociations taxable as corpora­ tions. For detailed information on this subject, consult the IRS free publication 550, "Tax In­ formation on Investment In- comp and Expenses." 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DIAL-A-DEVOTION PHONE 8 Hear God's Word Wherever You Are. SPONSORED BY: GUETTLER'S SERVICE STATION ! THINK ABOUT IT! I BOB JUSTEN People make various provisions in their wills. As we all know, a will involves arrangements for giving, while living. jeash commendations, awards, wardrobes, property, plaques etc. are all left behind when the time comes. In one way or another such things are left behind to serve others. This sort of thinking prompts this question: "What is one of the greatest gifts you can leave to others?" An unkown author answers the question rather nicely Read it. . . "If I can leave behind me, here and there. . . A friend or two to say when I am gone. . . That I had helped to make their pathways fair. . . .Had brought them smiles when they were bowed with care . . The riches of this world I'll carry on If only three or four shall pause to say When I have passed beyond this earthly sphere . . .That I brought glad­ ness to them on a day when bitterness was theirs. . . I'll take away more riches than a billionaire leaves here". . . . GEORGE R. JUSTEN FUNERAL HOM±. 3519 W. Elm St., McHenry, Illinois 10th ANNUAL R. V. EXPO 10 BIG DAYS JAN. 17-26 BIGGEST SALE OF THE YEAR FREE ADMISSION FREE REFRESHMENTS INDOOR SHOWROOMS AIRSTREAM - ARGOSY - FROLIC - SMOKEY - VOLUNTEER - NORRIS - MIDAS MINI ARGOSY MOTOR HOME CAMPERS U.S. 14 (Northwest Hwy.) at 31 CRYSTAL LAKE, ILL. 815-459-6611